Agency by estoppel (Section 237) arises where the principal:
ARatifies an unauthorised act
BExpressly appoints an agent in writing
CBy words or conduct induces a third person to believe a certain person is his agent, and is then estopped from denying it
DActs in an emergency
Answer & Solution
Correct answer: C. By words or conduct induces a third person to believe a certain person is his agent, and is then estopped from denying it
Where the principal's representation leads a third party to believe someone is his agent and the third party acts on it, the principal is estopped from denying the agency.
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