The Legislative Purpose, Value Orientation, and Reform of the Apparent Agency Doctrine

Abstract

In contemporary society, civil and commercial transactions are increasingly complex, with frequent cases where counterparties’ legitimate rights are harmed by unauthorized agencies. The apparent agency system is crucial for safeguarding transaction security and protecting bona fide counterparties’ reliance interests. This paper explores related issues using literature review, data analysis, and logical reasoning: it argues the system prioritizes protecting reliance interests and transaction security, balances dynamic/static security and fairness/efficiency, identifies disputes over the principal’s culpability, reasonable reliance standards and risk scope, and proposes improvements like clarifying criteria (such as determining the principle of culpability and refining factors for judging the reasonableness of reliance), optimizing burden of proof and expanding application (such as clarifying applicable rules in special circumstances like false seal defense, exceeding business scope, and actor’s criminal act). The research aims to enhance the system’s judicial application, stabilize legal relations, ensure transaction security and efficiency, and boost the healthy development of the market economy.