Under which circumstance can a principal be held liable for the actions of an agent?

A principal can be held liable for the actions of an agent when the agent acts within the limits of their authority. This principle is grounded in the concept of agency law, where the actions of an agent are legally binding on the principal when those actions fall within the scope of the authority granted to the agent.

When an agent is authorized to perform specific tasks or make decisions on behalf of the principal, any actions taken that align with that authority can result in the principal being held accountable. This includes both express authority and implied authority, where the agent's actions are consistent with the typical responsibilities of the role.

In contrast, the other circumstances provided in the choices have limitations that prevent them from being the sole basis for liability. For instance, apparent authority relies on the perception of third parties regarding the agent’s power, which may not always protect the principal. Negligence on the part of the agent does not automatically establish liability for the principal unless it can be connected to acts performed within the realm of the agent's authority. Similarly, a written agreement may outline the terms of agency but is not a prerequisite for the principal's liability in situations where the agent acts within their authority.