What principle of agency law could make an employer liable for hotel charges booked without permission?

In the context of agency law, ostensible authority refers to a situation where a third party reasonably believes that an agent has the authority to act on behalf of the principal (in this case, the employer) based on the principal's representations or conduct. If an employee books hotel charges without explicit permission, but the circumstances suggest that the employer had allowed such actions in the past or created an impression that the employee had the authority to incur such charges, the employer could be held liable for those charges.

The principle of ostensible authority protects third parties who rely on the perceived authority of an agent. This means that if a hotel had previous dealings with the employee where such bookings were made without any challenge or if the employer did not clearly communicate the limits of the employee's authority, the hotel may assume that the employee had the authority to book the accommodations.

In contrast, actual authority involves permissions that are explicitly granted, while implied authority pertains to authority that is not plainly stated but is assumed based on the agent's role. Restricted authority involves specific limitations placed on the agent's powers but does not apply here since the focus is on the belief of the third party. Thus, the correct application of the principle of ostensible authority can create a basis for the employer