Asked by Maddie Murch on May 02, 2024
Verified
In which of the following cases does apparent authority arise?
A) When a principal causes a third party to believe that the agent is authorized to act in a certain way.
B) When a principal's manifest consent is communicated directly to the agent.
C) When a person falsely represents himself as an agent of a principal to a third party.
D) When an agent reasonably believes that the principal wants him to act in a certain way.
Apparent Authority
A situation where a person appears to have been given the power by a business to act on its behalf, even if no formal authority has been granted.
Manifest Consent
Clearly and unmistakably expressed agreement or approval to an action or proposal.
Authorized Act
An action that has been officially approved or sanctioned by the proper authority.
- Acquire knowledge on the principle and application of apparent authority in the framework of agency connections.
Verified Answer
ZK
Zybrea KnightMay 05, 2024
Final Answer :
A
Explanation :
Apparent authority arises when the principal's manifestations cause a third party to believe reasonably that the agent is authorized to act in a certain way.
Learning Objectives
- Acquire knowledge on the principle and application of apparent authority in the framework of agency connections.