[A326]

apparent authority

Under agency law, apparent authority occurs when an agent exceeds express (actual) authority in an action but the person dealing with the agent has a justifiable belief that the agent is authorized to do the act in question. For example, an agent tells the customer she can bind coverage on her Corvette. The agent forgot that she cannot bind coverage on a Corvette but the customer does not know this and believes the agent is able to place insurance on the car.