Question

Apparent Authority

Dean is not Paul's agent, but Paul tells Charlie that Dean has always been a good friend and can "handle any of my business affairs." If Dean were to later enter into a contract with Charlie on Paul's behalf, Dean would be acting under an

Answer 1

Apparent authority

Step-by-step explanation:

Based on this text, if Dean were to later enter into a contract with Charlie on Paul's behalf, Dean would be acting under an apparent authority. Apparent authority is the power of an agent to act on behalf of a principal without it being expressly stated. This occurs when a third party infers that the principal has granted this power to the agent.