Agency

In Hawaii, which of the following best describes 'ostensible agency'?

AA written agency agreement
BAn agency created by the actions or conduct of the parties that leads a third party to reasonably believe an agency relationship exists✓ Correct
CA court-ordered agency relationship
DAn agency terminated by operation of law

Explanation

Ostensible (apparent) agency arises when a principal's conduct causes a third party to reasonably believe that someone is the principal's agent, even without an express agency agreement.

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