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Financial advisory
RES5Financial Advisory Services✓An agent has no actual authority to act, but the principal's conduct has led a third party reasonably to believe the agent is authorised. The principal is bound because the agent had:
Apparent or ostensible authority arises from the principal's representations or conduct leading a third party to reasonably believe the agent is authorised. The principal is estopped from denying the authority even though no actual authority was given.
Apparent authority binds the principal even where actual authority is absent, because of the principal's own representations.
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