Apparent Authority Arises When the Principal Creates an Appearance of Authority

question 349

True/False

Apparent authority arises when the principal creates an appearance of authority in an agent that leads a third party to conclude that the agent has authority to act for the principal.

---

Definitions:

Deposit

A sum of money placed in an account or with a third party as a security for the performance of an obligation or the purchase of something.

Tenancy by the Entirety

A form of joint property ownership reserved for married couples, where each spouse has an equal and undivided interest in the property.

Co-ownership

A legal arrangement where two or more individuals have ownership rights in a property or asset.

Married Couples

Two individuals united in marriage, recognized legally, socially, or by religious institutions, which forms a legally recognized partnership.