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 ?
Under the partnership statutes in most states, a general partner has the apparent authority to engage in any act within the ordinary course of business of the partnership (and thus bind the partnership to an agreement), even if actual authority is lacking.
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.
The next theory by which claimants are usually allowed to proceed in infringement cases is apparent authority. Apparent authority, also known as "customary authority," (27) arises when the principal's speech or conduct objectively leads the claimant to reasonably believe that an actor is an agent of the principal and may act on the principal's behalf.
However, a country defining the franchise relationship in this way (and Malaysia is just one of dozens of nations that does so) does not exclude franchisors from potential vicarious liability under actual or apparent authority. (184) Thus, to continue with the Malaysian example, the Malaysian courts have found that a franchisor can be held vicariously liable under theories of actual or apparent authority whenever the franchisor has some control over third parties or franchisees.
(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.
The Court of First Instance deemed the capacity of the First Partner, based on the apparent authority that he holds, sufficient to consider the contract as valid.
Moreover, " a seller may be liable for violations by its representatives under a broad range of agency principles, including not only formal agency, but also principles of apparent authority and ratification." FCC Ruling at 6584 (emphasis supplied).
A consent to extend the limitation period for the assessment for partnership items signed by the tax matters partner of a partnership in his capacity as the tax matters partner of another partnership was valid because the individual had the apparent authority to sign the consent.
The ABA Standing Committee on Ethics and Professional Responsibility recently issued a formal ethics opinion on the subject, stating that "[t]ypically, no lawyer in the prosecutors office reviews the case file to determine whether a crime has been committed and prosecution is warranted or reviews the letter to ensure it complies with the Rules of Professional Conduct prior to the mailing." (2) The ABA found that such collection letters "misuse the criminal justice system by deploying the apparent authority of a prosecutor" and "carry with them the implication that the prosecutor or associates in the prosecutors office have reviewed the facts and found that a crime has been committed and criminal prosecution is warranted," creating a false impression in violation of ABA Model Rule 8.4(c).
"For investigators going into potentially dangerous situations, and for the people they contact, it is critical both parties be able to rely on identification and apparent authority to conduct the investigation."
I'm surprised by this in a way given Eddie's apparent authority on the Bible and the Koran.