Agency

What is 'ostensible agency' (also called apparent agency)?

AAgency created by written contract
BAgency created when a principal allows a third party to reasonably believe someone is their agent✓ Correct
CAgency that arises by court order
DAgency between two licensed brokers

Explanation

Ostensible agency (apparent agency) occurs when a principal's conduct leads a third party to reasonably believe that a person is the principal's agent, even if no formal agency agreement exists. The principal can be bound by the agent's acts.

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