Question

Apparent agency, also known as _______, is when the principal has created by his conduct belief in another individual that a person serves as their agent when in fact they do not have the authority to act for the principal.

Answer 1

Answer:

apparent authority

Explanation:

Apparent agency or apparent authority is crated when the behavior of the apparent agent makes another party believe that they have the authority to act on behalf of another principal. E.g. when a salesperson decides to offer an explicit warranty for a certain product even if the company doesn't offer it, the warranty is valid because the salesperson had apparent authority to do so.