What type of agency relationship is created when an individual does not stop someone from selling their automobile?

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The correct answer is based on the concept of apparent agency, which occurs when a principal's actions lead a third party to reasonably believe that an agent has authority to act on their behalf, even if that authority has not been formally granted. In this scenario, by not stopping someone from selling their automobile, the individual creates an impression that they have consented to that action.

This lack of objection can imply to third parties that the individual has given the seller the authority to act as their agent in the sale. Therefore, the seller appears authorized to transact on behalf of the individual, aligning with the definition of apparent agency, where authority is inferred from the behavior of the parties involved rather than explicitly stated.

In contrast, express agency would require a clear, articulated agreement between the parties. Implied agency would arise from actions that suggest an agency relationship exists, but it's broader and might not involve a specific belief by a third party. Non-agency refers to situations where no agency relationship exists at all, which does not describe the situation here since the individual’s inaction implies an acceptance of the seller’s role.

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