Agency
In Texas, the concept of 'apparent authority' means a principal may be bound by an agent's unauthorized act when:
AThe agent has express written authorization
BThe principal's conduct reasonably led a third party to believe the agent had authority✓ Correct
CThe agent acted in good faith
DThe transaction benefited the principal
Explanation
Apparent authority (ostensible authority) arises when a principal's words or actions reasonably lead a third party to believe the agent has authority to act. If the third party relied on this reasonable belief, the principal may be bound by the agent's actions even if the agent lacked actual authority.
Related Texas Agency Questions
- Which of the following must a Texas seller's agent disclose to a buyer regarding the property?
- When a Texas broker acts as an intermediary, they are generally prohibited from:
- Under Texas law, an agent's duty of loyalty means the agent must:
- Under Texas law, the duty of 'obedience' an agent owes their client means the agent must:
- A Texas real estate agent's duty of 'accounting' requires the agent to:
- If a Texas real estate agent receives an offer on a listed property while the seller is vacationing abroad and unreachable, the agent should:
- A Texas buyer's agent learns that the listing agent misrepresented the property's square footage. The buyer's agent is obligated to:
- A Texas real estate agent has a duty to disclose all known material facts about a property to prospective buyers. This duty exists:
Practice More Texas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Texas Quiz →