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SharePoint Online does not support outgoing email. If you plan to build (an approval) workflow, your "externals" will need an Office 365 license in order to receive mails from the workflow.
See this article "Workflow actions in SharePoint Designer 2010: A quick reference guide" (office.microsoft.com/.../workflow-actions-in-sharepoint-designer-2010-a-quick-reference-guide-HA010376961.aspx) for more
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This is Jason Burnside from Microsoft Office365 SharePoint Support.
Thanks for coming to the communities with your concerns sending email appointments using the SharePoint Online Plan 2.
Did you find Jesper’s information helpful? Thanks for the post Jesper.
I will continue to monitor this thread if you have any additional questions.
Office 365 SharePoint Support
Hi Jesper and Jason,
Thanks for replying. Is there any plans in Office 365 that allows me to do what I need to do? Enterprise Plan 3 maybe? Or is it just a restriction with the Sharepoint offering on Office 365.
Unfortunately, it is a SharePoint Online restriction.
I will continue to monitor this thread for further posts or questions.