Asked by
James Thorn Jr
on Dec 19, 2024
Verified
Apparent authority in an agency relationship arises when the principal causes the agent to reasonably believe that he or she has the authority to act.
Apparent Authority
Apparent authority refers to a situation in which a person appears to be given power to act on behalf of another, thereby binding the principal through the agent's actions, even if the actual authority has not been granted.
- Distinguish between actual, implied, and apparent authority and analyze their effects on the principal-agent dynamic.
Verified Answer
TJ
Learning Objectives
- Distinguish between actual, implied, and apparent authority and analyze their effects on the principal-agent dynamic.