Multiple choice

Agency by ostensible authority may happen in the following ways:

  1. By estoppel

  2. By a legal presumption

  3. By holding-out

  4. All of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Agency by ostensible authority occurs when a principal's words or conduct lead a third party to reasonably believe that an agent has authority, even if no actual authority was granted. This can arise through estoppel (the principal is prevented from denying the agent's authority), legal presumption, or holding-out (where the principal represents the agent as having authority).

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