Q: Explain the Apparent Authority of agency.
Apparent Authority
a. Apparent Authority is created by conduct on the part of the Pr that would lead a rzbly prudent person using diligence and discretion to believe that Agent had authority to act for the Pr (focus: 3P’s belief)
b. elements
i. Pr manifests authority to a 3P (that purported A is his A)
ii. 3P relies on that manifestation (but not detrimental reliance)
c. doesn’t exist if 3P has notice of limitations of A’s powers
d. allows either party to bind the other
e. note: apparent authority is not actual authority
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