Agency

In South Carolina, which of the following best describes 'apparent authority' in agency law?

AAuthority specifically granted to an agent in writing
BAuthority an agent appears to have based on the principal's words or conduct, even if not expressly granted✓ Correct
CAuthority to bind third parties regardless of the principal's knowledge
DAuthority granted by SCREC to all licensed brokers

Explanation

Apparent authority (ostensible authority) arises when a principal's words or conduct lead a third party to reasonably believe an agent has authority to act. The principal may be bound by the agent's actions under apparent authority even if actual authority was not granted.

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