Law · Law of Agency
Arrange the following events in the correct chronological sequence to illustrate the formation and legal effect of Apparent Authority, as distinguished from Actual Authority. I. The third party reasonably relies on the agent's apparent authority. II. The principal's outward behavior creates the appearance of authority beyond any explicitly or implicitly granted actual authority. III. The principal becomes bound by the agent's actions. IV. A third party is led to reasonably believe that the agent possesses the legal power to act. Choose the correct answer from the options given below:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1II, IV, I, III✓
- 2II, I, IV, III
- 3IV, II, I, III
- 4I, III, II, IV
Correct answer
II, IV, I, III
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