In what scenario does Apparent Authority typically arise?

Apparent authority arises when a third party perceives that an individual has authority to act on behalf of another, typically based on the individual's behavior or the context in which they are operating, rather than formal or explicit consent. This perception can create a situation where the actions of the individual are considered authorized, even if they lack formal authority to act.

In many business contexts, apparent authority can lead to agreements or contracts being formed when an individual acts in a way that suggests they have the power to bind their organization, even if internal protocols or documentation do not support that authority. This can occur, for example, when an employee consistently engages in negotiations or decision-making that implies they have the authority to make commitments on behalf of the company.

The other options focus on formal grants of authority or requests for authority, which do not align with the concept of apparent authority. Apparent authority emphasizes the outward perception of authority based on behavior rather than any formalized structure or documentation.