Rhode Island Uniform Bar Examination (RI UBE)

Under agency law, which of the following best describes an agent acting with 'apparent authority'?

The principal expressly authorized the agent to act on their behalf The agent acts based on reasonable belief of authority granted by the principal A third party reasonably believes the agent has authority based on the principal's conduct The agent acts without any authorization but the principal later ratifies the act

Correct Answer:

A third party reasonably believes the agent has authority based on the principal's conduct

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