Which type of agency prevents denial of agency due to prior behavior?

Which type of agency prevents denial of agency due to prior behavior?

• A. Agency by Estoppel
• B. Express Agency
• C. Implied Agency
• D. Agency by Ratification

Answer: (A)

Agency by Estoppel is a legal concept that protects third parties dealing with an agent from being denied agency based on the previous actions or behaviors of the principal. It arises when a principal leads a third party to believe that a certain individual is their agent, and that third party relies on this belief to their detriment. If the principal has acted in a way that would reasonably cause someone to believe that the agent has the authority to act on their behalf, the principal cannot later deny the existence of that agency. For example, if a property owner frequently allows someone to negotiate sales on their behalf and gives them access to their properties or even provides them with business cards indicating they are acting as an agent, the property owner creates an expectation of agency. If the principal later tries to deny this relationship when a third party attempts to enforce a contract negotiated by the individual, the principal may be held to the prior behaviors that established the agent's authority in the eyes of the third party. In contrast, the other types of agency focus on how an agency relationship is formed or validated rather than on protecting third parties who may be acting in good faith based on what they perceived as a legitimate agent acting on behalf of a principal. Express agency is formed through a direct agreement,

Agency by Estoppel is a legal concept that protects third parties dealing with an agent from being denied agency based on the previous actions or behaviors of the principal. It arises when a principal leads a third party to believe that a certain individual is their agent, and that third party relies on this belief to their detriment. If the principal has acted in a way that would reasonably cause someone to believe that the agent has the authority to act on their behalf, the principal cannot later deny the existence of that agency.

For example, if a property owner frequently allows someone to negotiate sales on their behalf and gives them access to their properties or even provides them with business cards indicating they are acting as an agent, the property owner creates an expectation of agency. If the principal later tries to deny this relationship when a third party attempts to enforce a contract negotiated by the individual, the principal may be held to the prior behaviors that established the agent's authority in the eyes of the third party.

In contrast, the other types of agency focus on how an agency relationship is formed or validated rather than on protecting third parties who may be acting in good faith based on what they perceived as a legitimate agent acting on behalf of a principal. Express agency is formed through a direct agreement,