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a reference to the doctrine that a principal is responsible for the acts of his or her agent where the principal by words or conduct suggests to a third person that the agent may act in the principal's behalf, and where the third person believes in the authority of the agent.
EXAMPLE: A business organization that sells athletic equipment used Tim, a local sports star, to advertise and promote their products. His actions made it seem that he was part of the business, and the business did nothing to qualify that image. A manufacturer contracted with Tim to supply the businesss with various types of equipment under their belief that Tim was a part of that business. Although the business may not want that equipment, they are forced to purchase it. Tim's apparent authority as agent of the business organization was due to the organizaation's acquiescense, and this false impression obliges them to act in accordance with the contract.
Source: Barron's Dictionary of Legal Terms, Steven H. Gifis, 5th Edition; ©
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