Asked by Haley Smith on Jun 07, 2024
Verified
Apparent authority arises out of words or conduct of a disclosed or unidentified (partially disclosed) principal manifested to third persons.
Apparent Authority
A situation where a person appears to have been given the power by a company or another person to act on their behalf, even if no actual authority was granted.
Disclosed Principal
A situation in a business arrangement where the identity of the principal is known to all parties involved in the transaction.
- Gain an understanding of the framework of agency authority and differentiate between actual, apparent, and ratified authority.
Verified Answer
AR
Arlette RamirezJun 10, 2024
Final Answer :
True
Explanation :
Apparent authority is based on the principal's words or conduct that would lead a reasonable third person to believe that the agent has authority to act on behalf of the principal, regardless of whether the principal is disclosed or partially disclosed.
Learning Objectives
- Gain an understanding of the framework of agency authority and differentiate between actual, apparent, and ratified authority.