California Codes, Civil Code - CIV, Division 3 — Obligations, Part 4 — Obligations Arising from Particular Transactions, Title 9 — Agency, Chapter 1 — Agency in General, Article 3 — Mutual Obligations of Principals and Third Persons, Section 2334
A principal is bound by acts of his agent, under a merely ostensible authority, to those persons only who have in good faith, and without want of ordinary care, incurred a liability or parted with value, upon the faith thereof.
Notes
Establishes that a principal is bound by an agent’s acts under merely ostensible authority only toward persons who, in good faith and without lack of ordinary care, relied on that apparent authority by incurring liability or parting with value. The principal’s obligation therefore depends on both qualifying reliance and the relying person’s good faith and ordinary care.
Use as reference
Lexinter.net | California Code, Civil Code - CIV § 2334 | https://laws.lexinter.net/codes/california/civil-code/division-3/part-4/title-9/chapter-1/article-3/section-2334