Agency
Apparent authority in agency arises when:
AA principal expressly grants authority to an agent in writing
BA third party reasonably believes an agent has authority based on the principal's conduct✓ Correct
CAn agent acts on behalf of a principal in an emergency
DTwo agents share responsibilities for the same client
Explanation
Apparent authority (also called ostensible authority) exists when a principal's conduct leads a third party to reasonably believe an agent has authority to act, even if that authority was not expressly granted. The principal can be bound by such acts.
Related Rhode Island Agency Questions
- What is 'conversion of principal's funds' in the context of Rhode Island real estate agency?
- In Rhode Island, 'ostensible agency' (or apparent agency) can arise when:
- A buyer's agent is showing a property listed by another broker in their office. Which type of agency situation arises within the same brokerage?
- A buyer's broker submits an offer on a listed property and discloses that they represent the buyer. The listing broker is required to:
- Under Rhode Island law, which statement about buyer agency agreements is correct?
- In Rhode Island, the agency disclosure form must be provided to a prospective buyer or seller:
- Agency can be terminated by all of the following EXCEPT:
- When does a listing broker's agency relationship with a seller begin?
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