Simple English definitions for legal terms
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Term: Ostensible Agency
Definition: Ostensible agency is when someone appears to be an agent for another person, even if they are not officially hired or appointed. This can happen if the actions of the supposed agent lead others to believe they have the authority to act on behalf of the principal. It is also known as agency by estoppel or apparent agency.
Ostensible agency is a type of agency relationship where a principal's actions lead a third party to believe that an agent has the authority to act on behalf of the principal. This belief is reasonable and is created by the principal's conduct or words.
For example, if a company allows an employee to wear a uniform with the company's logo and sends them out to make deliveries, a third party may reasonably believe that the employee has the authority to act on behalf of the company. If the employee then makes a deal with the third party, the company may be bound by that agreement even if they did not explicitly authorize the employee to make such a deal.
Another example is when a doctor hires a nurse to assist with patient care. If the nurse administers medication to a patient, the patient may reasonably believe that the nurse has the authority to act on behalf of the doctor. If the medication causes harm to the patient, the doctor may be held liable for the nurse's actions.
These examples illustrate how a principal's actions can create an ostensible agency relationship, where a third party reasonably believes that an agent has the authority to act on behalf of the principal.