If an agent has the apparent authority to act, the principal will be liable unless the principal placed any undisclosed limitations on that authority.

Apparent Authority

Authority that is only apparent, not real. An agent’s apparent authority arises when the principal causes a third party to believe that the agent has authority, even though she or he does not.

Undisclosed Limitations

Restrictions or constraints on an agreement or condition that are not made known to all parties involved.