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9 December, 19:48

Based on Esteban's conduct, Floyd reasonably believes that Glynis has the authority to act on Esteban's behalf even though Glynis does not have the actual authority to do so. Floyd makes a payment to Glynis for Esteban. Glynis keeps the money and disappears. Esteban

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  1. 9 December, 19:50
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    may be estopped from denying that Glynis had authority.

    Explanation:

    In this case, Glynis apparently had the authority to collect Esteban's money, since his conduct made other people believe that.

    Apparent authority is defined as a situation where a reasonable person (Floyd) will believe that the agent (Glynis) has authority to act on behalf of the principal (Esteban). If such a situation exists, then the principal is bound by the agent's actions.
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