Agency

In South Dakota, 'apparent authority' in agency law means:

AThe agent's written authority from the principal
BAuthority that a third party reasonably believes the agent has, based on the principal's actions or representations✓ Correct
CThe agent's authority to bind the principal in any transaction
DAuthority granted by the court when no agency agreement exists

Explanation

Apparent authority arises when the principal's actions lead a third party to reasonably believe the agent has authority to act. The principal may be bound even if the agent lacked actual authority.

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