Apparent Authority May Exist

question 45

Multiple Choice

Apparent authority may exist:

• A)only if actual authority has been conferred.
• B)if a principal has unintentionally permitted third persons to believe a person is her agent.
• C)if the principal specifically describes the extent of the agent's powers in writing or orally and makes him/her a special agent.
• D)when the conduct of the principal causes a third person reasonably to believe that another has the authority to act for the principal.

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Definitions:

Court Order

A formal directive issued by a court of law requiring a person or entity to do or refrain from doing something.

Debtor

An individual or entity that owes a debt to another; the opposite party being a creditor.

Secured Creditor

A creditor that has a legal claim, called a lien, on the debtor's assets, ensuring priority payment if the debtor defaults on the obligation.

Unsecured Creditor

A creditor who extends credit without requiring specific collateral to secure the debt owed by the borrower.