Agency

What is 'apparent authority' in Oregon agency law?

AAuthority that is clearly written in the agency agreement
BAuthority that a third party reasonably believes an agent has based on the principal's conduct, even if it wasn't explicitly granted✓ Correct
CAuthority given to the agent for emergency situations only
DThe authority an agent has to list a property

Explanation

Apparent authority arises when the principal's conduct leads a third party to reasonably believe the agent has authority to act on the principal's behalf, even though that specific authority was never explicitly granted. Principals can be bound by agents acting within their apparent authority. Oregon courts recognize apparent authority as a basis for binding principals to agent actions.

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