Explain the legal principle apparent authority

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Theresa is not liable to pay Paulette. Although Albert was fired, the end of the relationship between Albert and Paulette was not made apparent to third parties that Albert dealt with before. Paulette should have given notice to Theresa herself and the general public through newspaper that the relationship was terminated to ensure that Albert did not act beyond his authority. The legal principle apparent authority was applied to protect Theresa. Agents have a fiduciary duty to be loyal to the principal. They must not engage in self-dealing by taking opportunities from principals for themselves or third parties. They must also not enter into any other agreements that conflict with the duties that are owed to their principals. Before entering into any such agreements, they must disclose that information to their principals.

Reference no: EM13115283

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