Which of the Following Statements Is True of Agency by Estoppel

Multiple Choice

Which of the following statements is true of agency by estoppel?

A) It determines an agent's authority based on customs, circumstances, and the facts of a situation.
B) If a third person is led by a principal to believe that a certain individual is the principal's agent, it grants an agent the authority to act.
C) It is formed when a third party is unaware of the existence of a principal.
D) It occurs when an unauthorized agent commits a principal to an agreement and the principal accepts the unauthorized agreement.