What does "apparent authority" refer to in agency law?

"Apparent authority" refers to the authority that an agent appears to have to third parties, based on the conduct of the principal. Essentially, it is the perception of others regarding the agent's authority to act on behalf of the principal. This concept arises in situations where the principal has not explicitly granted authority but has acted in a way that would lead others to believe the agent possesses certain powers.

For example, if a business owner consistently allows an employee to negotiate contracts and represent the company in dealings with clients, those clients may reasonably assume that the employee has the authority to bind the company. If the principal later attempts to deny that the employee had such authority, the clients may still hold the company accountable based on the apparent authority that was constructed through the principal's actions.

The other choices focus on different aspects of authority. Express authority involves clearly articulated powers given to an agent. The notion of authority changing during a contract period is not relevant to the definition of apparent authority, nor is authority that cannot be legally enforced indicative of the concept at hand. Apparent authority serves to protect third parties who act in reliance on an agent's apparent powers, even if such authority was not explicitly granted by the principal.