Which of the following is a true statement?
A) In order to cre ate an agency relationship there must always be a written agreement prepared by an attorney.
B) An agency that comes into existence due to the acts or conduct of the parties is called an express agency.
C) Agency by ratification can occur in a situation where there was no authority for the agent’s actions when the agent originally undertook them.
D) An apparent agency can only be created by the actions of the agent.
Answer
D) An apparent agency can only be created by the actions of the agent.
This is because a principal can be bound by agent’s actions if one finds: 1) actual authority, 2) apparent authority
Explanation
This is basically true by the fact that an apparent authority is used to refer to a situation where a reasonable third party would understand that an agent had authority to act which basically means a principal is bound by the agent’s actions, even if the agent had no actual authority, whether express or implied thus holds to say that an apparent agency can only be created by the actions of the agent
