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 ?
Apparent authority can arise when an agent holds himself or herself out to third parties as having authority to take a certain action for his principal or employer and the principal or employer knowingly permits the agent to hold himself or herself out as having authority, or when the principal or employer, through a failure to act with ordinary care, leads a reasonably prudent person to believe that the agent has authority to act.
28) Unlike actual authority, apparent authority does not have the same ramifications regarding the principal and agent's relationship.
46) This lack of public knowledge about the relationship between the franchising parties has led courts to deem franchisee use of the franchisor's trade name as grounds for finding apparent authority.
20) The plaintiffs appealed the district court's grant of the motion to dismiss to the Ninth Circuit on the grounds that scienter can be imputed from an agent to its principal where the agent acts with actual or apparent authority and an innocent third party relies on the agent's authority, regardless if the conduct is adverse to the principal.
But normally, the theory of apparent authority only applies to actions or things said by the principal directly to the third party.
The IRS asserted that the Form 872-P was valid because Gjelde, as managing member of both Summit SV Holdings and Meridian, had apparent authority to extend the period of limitation for Summit.
I'm surprised by this in a way given Eddie's apparent authority on the Bible and the Koran.
authority to do so; the doctrine of apparent authority has no application to municipalities.
He knows that if you say these things with apparent authority, and also imply that it's esoteric and dangerous knowledge, some of the more credulous out there will drink the blood from that unholy grail.
The court observed that the office of vice president does not by itself carry any actual or apparent authority to bind the corporation.
A spokeswoman for Eversheds said: "We are pleased to confirm that the Court of Appeal has upheld the earlier decision in Eversheds' favour that the airport executives at Newcastle International Airport had apparent authority to instruct Eversheds.
The fact that the alleged agency is founded on apparent authority is not itself the source of any difficulty; instead, the question before a court will be whether the facts bear out the appearance of the agency as pleaded.