Asked by kevin britton on Apr 30, 2024
Verified
Which of the following type of agency exists when a third party reasonably believes,on the basis of the principal's actions,that an agency relationship exists between the principal and another individual?
A) Express
B) Implied
C) Actual
D) Statutory
E) Apparent
Apparent Agency
A legal doctrine allowing a principal to be held liable for the actions of an agent, based on the appearance of authority given to the agent by the principal.
Principal's Actions
Refers to the deeds or activities undertaken by the principal figure in a contractual or agency relationship, affecting the relationship's legal standing.
- Detail the theory of undisclosed, partially disclosed, and disclosed principals, as well as the legal consequences linked to each status in agency affiliations.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
E
Explanation :
Apparent agency exists when a third party reasonably believes,on the basis of the principal's actions,that an agency relationship exists between the principal and another individual.Thus,if the third party reasonably believes that the agent has the authority to represent the principal,the principal must uphold any agreements made with the agent,who has apparent authority.The principal is prevented (estopped)from acting as if the agent had no such authority.
Learning Objectives
- Detail the theory of undisclosed, partially disclosed, and disclosed principals, as well as the legal consequences linked to each status in agency affiliations.