Asked by Ariah Scales on Jun 26, 2024
Verified
What happens if a third-party gives proper notification to an agent with apparent authority to receive it?
A) The principal is bound only if the agent had express authority to receive notification.
B) The principal is bound based on the doctrine of third party estoppel.
C) The principal is bound as if the notification had been given directly to him.
D) The principal is not bound unless it is proven the agent transmitted the notification.
Apparent Authority
The impression given to third parties that an agent is authorized to act on behalf of a principal, even if such authority has not been formally granted.
Proper Notification
The act of informing someone through legally accepted or specified means.
Doctrine
A principle or body of principles presented for acceptance or belief, as by a religious, philosophical, scientific, or political group; policy.
- Recognize the conditions under which a third party is bound by notifications given to an agent with apparent authority.
Verified Answer
Learning Objectives
- Recognize the conditions under which a third party is bound by notifications given to an agent with apparent authority.
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