AgencyIntermediateDelaware Exam

Apparent authority in agency law means:

AThe agent's actual authorized actions
BAuthority a third party reasonably believes the agent has based on the principal's conductCorrect
CAuthority expressly granted in a written agreement
DAuthority implied by law for necessary acts

Why Authority a third party reasonably believes the agent has based on the principal's conduct Is Correct

Answer B: Authority a third party reasonably believes the agent has based on the principal's conduct

Apparent authority arises when a principal's actions or representations lead a third party to reasonably believe the agent has authority, even if it was not expressly granted.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

Key Agency Terms in This Question

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