When actions lead another person to assume that one is an agent, this scenario is known as?

The correct choice, ostensible agency, refers to a situation where one party's actions lead another party to reasonably believe that they are acting as an agent for someone else, even though no formal agency relationship may exist. This concept relies heavily on the appearances and conduct of the parties involved rather than on explicit agreements or contracts.

In scenarios of ostensible agency, the emphasis is on the impression that the supposed agent gives to third parties. For example, if a person consistently conducts business in a way that suggests they have the authority to act on behalf of another person or business, a third party may rely on that representation when entering a contract with them, presuming an agency relationship exists.

This differs from the other forms of agency listed. Implied agency occurs when an agency relationship is inferred from the situation or conduct of the parties involved, rather than being explicitly stated. Express agency involves a clear, written, or spoken agreement designating one party as the agent of another. Universal agency grants the agent broad authority to act on behalf of the principal in all matters, making it a more comprehensive form of agency.

The essence of ostensible agency lies in the reliance of third parties on the perceived authority of the agent, making it a critical concept within