Which of the following represents an agent's authority derived from prior actions?

The concept of authority is essential in understanding the relationship between agents and principals in various contexts, such as business and law. Apparent authority specifically refers to the situation where a third party reasonably believes that an agent has the authority to act on behalf of the principal, based on the principal's prior actions or conduct.

When a principal has created a situation in which it appears to a third party that the agent is authorized to act, even if that authority was not explicitly granted, the agent is said to have apparent authority. This is critical because it protects the interests of third parties who may rely on the perceived authority of the agent.

For instance, if a principal has allowed an agent to negotiate deals in the past without objection, a third party may reasonably conclude that the agent has the authority to do so in the future. This notion is based on the principle of estoppel, which prevents the principal from denying the agent's authority when the third party has relied on the principal's previous conduct.

In contrast, express authority is the actual authority that is directly granted by the principal, often in writing or through clear verbal communication. Actual authority encompasses both express and implied authority, where the latter arises from the circumstances or necessity of the situation rather than explicit approval