- 1 Marks
Question
The relationship that is created as a result of the representation by the principal which leads a third party reasonably to believe that an agency relationship exists is known as agency by ___________.
Answer
Estoppel
Explanation:
The correct answer is Estoppel because agency by estoppel occurs when a principal’s conduct leads a third party to believe that an agency relationship exists, even if no formal agreement is in place.
- Topic: Agency Law
- Series: MAY 2013
- Uploader: Theophilus