Question

Is the following statement True or False and how?

"The mere appearance that a person is an agent of the principal may be enough to establish an agency relationship if the principal has not corrected that appearance and allowed them to think there is an agency relationship."

Thank you

Answer 1

True -  An agency can be created by express or implied consent, conduct, necessity or by ratification of the agent’s act by the principal. Here, the relationship exist by conduct of party or situation– E.g. estoppel- Whereby a person allows another to act for him to such an extent that a third party reasonably believes that an agency relationship exists between the two. Since,principal has not corrected that appearance and allowed them to think there is an agency relationship.