Affirmation of Liability Based on Apparent Agency
Synthèse Legislator
Généré par l'IAA party appealed a lower court decision that held them liable for damages stemming from an apparent agency relationship, arguing that no express mandate existed and the third party should have been aware of the lack of authority, but the court affirmed the ruling by finding that the appearance of authority, created or knowingly permitted by the principal, was sufficient to bind the principal to the contract made by the purported agent, even without an explicit mandate, because the third party reasonably relied on the principal's representations or inaction.
Regeste Legislator
Généré par l'IAAffirmation of Liability Based on Apparent Agency: A party appealed a lower court decision that held them liable for damages stemming from an apparent agency relationship, arguing that no express mandate existed and the third party should have been aware of the lack of authority, but the court affirmed the ruling by finding that the appearance of authority, created or knowingly permitted by the principal, was sufficient to bind the principal to the contract made by the purported agent, even without an explicit mandate, because the third party reasonably relied on the principal's representations or inaction.