If an employee acts without authority and a third person justifiably relies on the employee's authority this is called?

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1049900

2026-08-07 07:30

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This situation is referred to as "apparent authority." Apparent authority occurs when an employee appears to have the authority to act on behalf of the employer, leading a third party to reasonably rely on that perception. Even if the employee acted without actual authority, the employer may still be bound by the employee's actions if the third party was justified in their reliance.

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