What is ostensible agency?

Ostensible agency, also known as apparent agency, is a concept in agency law where a principal's actions or representations lead a third party to believe that an agent has authority to act on the principal's behalf, even if no formal agreement has been made. This type of agency arises from the behavior and circumstances surrounding the interactions between the parties rather than from a written or explicit agreement.

In the context of agency relationships, when a principal's conduct creates a perception of authority, the principal can be held accountable for the actions of the agent, as those actions are believed to be authorized based on the principal's representations. This is particularly important in situations where a third party relies on those representations to engage in a transaction, potentially creating liability for the principal.

The other options describe concepts that do not specifically align with the definition of ostensible agency. A written agreement pertains to formal contracts, explicit agency relationships involve clear and direct consent for authority, and temporary agreements relate to a limited time frame rather than the underlying perception of authority that defines ostensible agency.