Apparent Or Ostensible Auhority

Any representation made by the principle which induces a third party reasonably to believe that a particular person is an agent of the principle makes the principle liable for the agents actions.

This is know as apparent authorithy.The representation may be by words or by conduct;it must clearly indicate that the agent has authority to do a particular act on behalf of his principle,and the representation must be made to the person seeking to hold the principle liable.

Apparent authorithy is also known as authorithy by estoppel.Where one has so acted that form his conduct he leads another to believe that he has appointed someone to act as his agent and knows that the other person is about to act on that belief,he is estopped from denying the existence of the agency.An apparent authority is based on belief that the agent had the authority.Therefore ,a third party cannot rely on this plea if he had actual or contructive notice that in fact the agent had no authority,of if the circumstances should have aroused his suspicious.