4.6 Apparent Agency is a legal concept that is used to determine whether a person (the principal) is liable for the actions of another (the agent). This concept is based on the idea that the principal has created the appearance of a relationship between them and the agent, and is therefore responsible for the agent's actions as if they were their own. There are two types of apparent agency: express and implied. Express apparent agency occurs when the principal has made an explicit statement or agreement to the third party that the agent is acting on their behalf. Implied apparent agency occurs when the principal has not made an explicit agreement but has acted in a way that implies that the agent is acting on their behalf.
4.6 Apparent Agency
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Multi-State
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US-JURY-9THCIR-4-6
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Sample Jury Instructions from the 9th Circuit Federal Court of Appeals. http://www3.ce9.uscourts.gov/jury-instructions/
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FAQ
An agent will have apparent or ostensible (not actual) authority if the principal has indicated to a third party that an agent has the authority to act on their behalf, despite the fact that the agent doesn't have the actual authority to do so.
Apparent authority is the power of an agent to act on behalf of a principal, even though not expressly or impliedly granted. This power arises only if a third party reasonably infers, from the principal's conduct, that the principal granted such power to the agent.
Apparent agency will require three elements: 1) an act by the apparent agent or his principal justifying a belief that an agency relationship exists, 2) the principal has knowledge of the general circumstances, and 3) a third party is reasonably relying on his belief in the apparent agency relationship.
You are told that Angelo is actually a car mechanic and has no authority to bind that deal. However, you reasonably believed that Angelo was a car salesman who had the authority to sell you the car. Basically, you believed Angelo had the apparent authority to sell you the car.
