Agency
What is 'apparent authority' in agency law?
AAuthority granted explicitly in a written agreement
BAuthority that arises because the principal allows a third party to reasonably believe the agent has authority✓ Correct
CAuthority that exists only for commercial transactions
DAuthority that the agent creates without any approval from the principal
Explanation
Apparent authority (ostensible authority) exists when a principal's words or conduct lead a third party to reasonably believe that an agent has authority to act on the principal's behalf, even if no such authority was explicitly granted.
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