Apparent authority arises from the principal's conduct that causes which of the following?

Apparent authority is a legal concept in agency law where an agent appears to have the authority to act on behalf of a principal due to the principal's conduct. The correct answer reflects this principle because apparent authority arises when the principal's actions lead a third party to reasonably believe that the agent has the authority to act. This situation typically stems from the way the principal has presented the relationship, whether through words, actions, or other forms of communication.

For instance, if a principal has often allowed an agent to negotiate contracts and has publicly identified the agent in that capacity, a third party could justly infer that the agent still retains the authority to negotiate on the principal's behalf, even if the agent's authority has been revoked. This framework protects third parties who rely on the appearance of authority in their dealings with agents.

The other options, while related to agency principles, do not precisely capture the essence of apparent authority. Some refer to the agent's perception or internal beliefs rather than the objective standard of the third-party's reasonable belief, which is crucial to the definition and application of apparent authority in legal contexts.