Agency
Agency by estoppel can be created when:
AA written agency agreement is signed by both parties
BA principal allows a third party to reasonably believe an agency relationship exists and the third party relies on it✓ Correct
CAn agent exceeds their authority and the principal later ratifies
DA broker advertises services without a written agreement
Explanation
Agency by estoppel (also called apparent agency) arises when a principal's conduct leads a reasonable third party to believe that an agency relationship exists, and that third party acts in reliance on that belief. The principal may be estopped from denying the agency.
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