Agency
Agency by estoppel is created when:
AA principal signs a written agency agreement
BA principal's conduct leads a third party to reasonably believe a person is their agent, and the principal fails to correct the misunderstanding✓ Correct
CAn agent acts in an emergency without prior authorization
DTwo agents agree to split a commission
Explanation
Agency by estoppel (apparent authority) is created when a principal allows a person to act as if they are their agent, and a third party reasonably relies on this appearance. The principal is estopped (prevented) from denying the agency.
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