DC Bar Practice Questions - District Of Columbia Bar Examination Exam

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An agent with apparent authority enters a contract on behalf of a principal with a third party. The principal is bound because:

The agent had express written authority The agent ratified the contract The principal's manifestations led the third party reasonably to believe the agent had authority to act Apparent authority never binds a principal

Correct Answer:

The principal's manifestations led the third party reasonably to believe the agent had authority to act

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