Apparent Agency


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Apparent Agency

A situation in which a person or company inaccurately claims to be an agent for another person or company and conducts some act in that capacity, but which the principal (who is not actually a principal) later accepts and recognizes. Because the agent is not actually an agent, any act he/she conducts on behalf of the principal ordinarily would be invalid; however, agency by ratification exists because the "principal" confirms the act.
References in periodicals archive ?
1983) (stating that when a third party reasonably relies upon the supposed authority of the agent--which the principal holds the agent out as having--the principal is liable under an apparent agency relationship); Finnegan Constr.
IHA and the Illinois State Medical Society are backing Amendment #5 to SB 2239, which includes stronger language on apparent agency reform and physicians' personal asset protection.
In addition to apparent agency, plaintiffs injured by the negligence of independent-contractor physicians may be able to hold hospitals vicariously liable under theories of nondelegable duty or joint venture.
And that order as written, and it was the defendants who wrote the order, only addressed the apparent agency issue and not the actual agency.
17) Evidence that can help prove an apparent agency relationship in an HMO case includes--
COURT'S OPINION: The Supreme Court of New York, Albany County, held that the hospital failed to demonstrate, that it was not liable under an ostensible or apparent agency theory for the care the patient received in July 2006.
There was a myriad of errors and omissions by the hospital if it honestly hoped that it was not creating an apparent agency situation for which it would be liable for the negligence and/or medical malpractice of the employees of Hudson Anesthesia Group.
In order to create such an apparent agency, there must be words or conduct of the principal, communicated to a third party, which give rise to the appearance and belief that the agent possesses the authority to act on behalf of the principal.
LEGAL COMMENTARY: An apparent agency exists only if all three of the following elements are present: (a) representation by the purported principal: (b) a reliance on that representation by a third party; and (c) a change in position by the third party in reliance on the representation.
The apparent agency exception applied in this case.
COURT'S OPINION: The Supreme Court of New York, Appellate Division, held that there was a genuine issue of material fact as to whether liability could be imposed upon the hospital based on apparent agency precluding summary judgment in favor of the hospital.
The circuit judge granted the hospital's motion for summary judgement on the issues of actual agency, apparent agency, and non-delegable duty.