agency by estoppel

Definition of "agency by estoppel"
  1. Occurs when a principal's actions lead a third party to believe that another person is his or her agent, despite no actual agency being set up. The law enforces this perceived relationship if the third party is harmed by acting on this belief
How to use "agency by estoppel" in a sentence
  1. The court ruled in favor of the third party because the principal's behavior created an agency by estoppel.
  2. Due to the principal's misleading actions, the third party experienced harm under agency by estoppel.
  3. The principal was held accountable for the agent's actions because it was a case of agency by estoppel.

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