An ostensible agent is an individual who appears to have authority to act on behalf of another party (the principal) but does not actually possess such authority. This perception of authority may arise from the actions, statements, or conduct of the principal that leads third parties to believe that the individual is authorised to act on behalf of the principal. Even though the ostensible agent lacks actual authority, the principal may still be bound by the actions or representations made by the ostensible agent if the third party reasonably relied on the belief that the agent had authority. In such cases, the principal may be held liable for the actions of the ostensible agent under the legal doctrine of apparent authority.
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This glossary post was last updated: 29th March 2024.
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