Which of the Following Is Not a Requirement for Establishing

question 32

Multiple Choice

Which of the following is not a requirement for establishing that an agent has apparent authority?

• A)The agent did not have actual authority.
• B)The third party knew that the agent did not have actual authority.
• C)The principal 'held out' the agent as having authority to act on their behalf.
• D)The third party relied upon that holding out and assumed that the agent had actual authority.

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Definitions:

Fixture

A piece of property that was originally moveable but has become attached to real property in such a way that it is legally considered part of the real property.

Subrogation

is a legal doctrine allowing one party (usually an insurer) to step into the shoes of another party to pursue rights or claims against a third party, often to recover amounts paid out in a claim.

Surety

A form of financial guarantee, wherein one party (the surety) agrees to take on the financial obligations of another if they default.

Reimbursement

The act of compensating someone for an expense incurred, often associated with business expenses or insurance claims.