Asked by Rawynsk Silva on Jun 26, 2024
Verified
Apparent authority protects third parties who reasonably rely on the principal's manifestations that the agent has authority.
Apparent Authority
A situation where a third party reasonably believes that an agent has the authority to act on behalf of a principal, even if the agent does not have such authority.
Principal
In a financial context, the principal is the initial amount of money borrowed or invested, excluding any interest or profit. In an educational setting, it refers to the head of a school.
Agent
An individual authorized to act on behalf of another, often in business or legal matters.
- Analyze the protective measures for third parties under apparent authority doctrine.
Verified Answer
MR
marissa rodriguezJun 30, 2024
Final Answer :
True
Explanation :
Apparent authority protects third parties who reasonably rely on the principal's manifestations that the agent has authority.It assumes special importance in cases where the principal has told the agent not to make certain contracts that the agent ordinarily would have actual authority to make,but the third party knows nothing about this limitation and has no reason to know about it.
Learning Objectives
- Analyze the protective measures for third parties under apparent authority doctrine.