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- Ostensible authority or apparent authority is a situation when a person appears to be authorized to act on behalf of another person or entity123. This can arise from the words or conduct of the principal, who allows the agent to make contracts of a certain kind on its behalf24. A third party who reasonably believes that the agent has the authority to act can legally bind the principal by dealing with the agent243.Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.In agency law, when someone appears to be duly authorized to represent a business entity, company or individual, then that person (the agent) has the “ostensible authority” to legally engage the company (the principal).incorporated.zone/ostensible-authority/Apparent authority (also called "ostensible authority") exists where the principal's words or conduct would lead a reasonable person in the third party's position to believe that the agent was authorized to act, even if the principal and the purported agent had never discussed such a relationship.en.wikipedia.org/wiki/Law_of_agencyOstensible agency (also referred to as apparent authority) is a term that refers to a situation when a third party is led to believe that a person was acting as the agent or on behalf of another.incorporated.zone/ostensible-agency/Ostensible authority or apparent authority: is the power of an agent to legally bind its principal with a third party, and arises from conduct of a principal, by permitting the agent to make contracts of a particular kind on its behalf. That’s done by holding out that a person has authority to deal with the company’s affairs on its behalf.hallellis.co.uk/ostensible-apparent-authority/
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