agency

ostensible agency

An agency relationship implied by law when a principal's words or conduct lead a third party to reasonably believe that someone is the principal's agent, even though no actual agency was created. Also called apparent agency, it can make the principal responsible for the apparent agent's acts. It is closely related to agency by estoppel.

Exam tip
Ostensible (apparent) agency is created by the principal's conduct, not by an agreement. Accidental agency by a licensee's own conduct is usually described as implied agency.
Example
A seller repeatedly lets a neighbor show the house and negotiate as if authorized; a buyer who relied on this may hold the seller to the neighbor's statements.

Related terms & state variants

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Last verified: 2026-10-23