Agency

Ostensible agency (apparent authority) arises when:

AA principal expressly authorizes an agent in writing
BThe principal's conduct leads a third party to reasonably believe an agency exists✓ Correct
CAn agent acts without any principal authorization
DA court appoints an agent to act on behalf of an incapacitated principal

Explanation

Ostensible agency arises from the principal's conduct or representations that cause a third party to reasonably believe a person is the principal's agent, even if no actual agency was created. The principal may be bound by the agent's acts.

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