A company authorizes a salesman to be responsible for the business with B company all the year round. He signed all the contracts and received the money. In June, 20021year, he signed a contract with company b, and actually left in May. But company B didn't know it, thinking that as usual, the money had been credited to his account again.

As a result, he ran away with the money Later, Company B saw the slow delivery of Company A, and it was only after contacting him that it knew. After that, B sued A, demanding that A take responsibility. A can claim compensation from this salesman after taking responsibility.

So in this case, in theory, this salesman constitutes an agency by estoppel, that is, this salesman has no right to represent A and B in good faith and has reason to believe that this salesman has the agency right. Company A is at fault (because it failed to inform the salesman that he has left his job in time), and Company A should bear the responsibility.

The main reasons for agency by estoppel:

1. The principal directly or indirectly indicates to the third party that he is his agent in written or oral form.

2. The entrustment contract between the principal and the agent is invalid or revoked, but the agency certificate has not been recovered.

3. After the termination of the agency relationship, the principal fails to take necessary measures to publicize the fact of the termination of the agency relationship and withdraw the agency certificate held by the agent.

4. The appearance of the actor is enough to make the third party think that he has the power of agency to trade with him.