The doctrine of 'holding out', also known as apparent or ostensible authority, is based on estoppel1. Such agency by estoppel arises where one person has acted2 so as to lead another to believe that he has authorised a third person to act on his behalf, and that other in such belief3 enters into transactions with the third person within the scope of such ostensible authority4. In this case the first-mentioned person is estopped from denying the fact of the third person's agency under the general law of estoppel, and it is immaterial whether the ostensible agent had no authority
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