With respect to the formation of agency by estoppel, which of the following statements is true?
◦ When a party terminates an express agency agreement with an agent and notifies third parties with whom that agent normally dealt, that party will be liable on a contract made for it by that "fired" agent.
◦ The issue of apparent authority arises only if a person acts as an agent when he or she has express or implied authority.
◦ When a party represents, by words or conduct, that someone is its agent, that party can later deny liability on a contract made for it by that agent on the basis that no express agency agreement existed.
◦ If the principal tells an agent specifically not to sell something and the agent, in disobedience of those instructions, sells it anyway, the principal may be bound by the contract because of estoppel.
◦ When a third party suspects that the agent it deals with has no authority, there is no obligation on it to question the agent's alleged authority.
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Which is TRUE about the alternation of generations cycle that is diagramed above?
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