Apparent authority can be defined as the authority that:

Apparent authority is a key concept in agency law that deals with the perception of authority. It refers to the situation in which a third party believes that an agent has the authority to act on behalf of the principal, based on the actions or communications made by the principal. This is often derived from the principal's conduct, which can lead others to reasonably conclude that the agent has certain powers to make decisions or take actions.

When a third party interacts with an agent, they form their understanding of that agent's authority largely based on how the principal has represented the agent's position. If the principal has created a scenario where the agent appears to have authority—whether through explicit communication, actions, or a specific role—then the third party's belief is justified. Thus, the correct answer aligns closely with the definition of apparent authority as it emphasizes the perspective of others (the third parties) regarding the agent's capabilities.

The other choices don't capture the essence of apparent authority effectively. The notion that only the agent recognizes the authority relates more to inherent authority, while stating that the agency contract explicitly outlines authority pertains to explicit authority. Additionally, authority received through formal training does not directly involve the perception of others, which is central to understanding apparent authority. This focus