Agency

What is apparent authority and how can Ohio brokers protect against it?

AOnly applies in commercial transactions
BAuthority third parties believe agents have; brokers should clearly define agent authority in writing✓ Correct
CAuthority that is written but not real
DAuthority given verbally by the principal

Explanation

Apparent authority binds the principal when third parties reasonably believe an agent has authority. Ohio brokers can protect themselves by defining agent authority clearly in employment agreements and informing clients of limitations.

Related Ohio Agency Questions

Practice More Ohio Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Ohio Quiz →