apparent authority


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apparent authority

n. since under the law of agency the employer (the principal) is liable for the acts of his employee (agent), if a person who is not an agent appears to an outsider (a customer) to have been given authority by the principal then the principal is stuck for the acts of anyone he allows to appear to have authority. This "apparent authority" can be given by providing Joe Slobovia (who has no authority to contract) with materials, stationery, forms, a truck with a company logo, or letting him work out of the company office, so that a reasonable person would think Joe had authority to act for the company. Then the contract or the price quote given by Joe and accepted by third party is binding on the company. Apparent authority may also arise when Joe works for the company, has no authority to contract, but appears to have been given that authority. Beware of the salesman who exceeds his authority or the hanger-on who claims to work for the boss. (See: agency, ostensible authority)

apparent authority

the situation where, objectively looked at, it seems that an agent does have the authority of his principal. Where an agent has apparent authority to enter into a transaction, the fact that he lacks real authority will not necessarily render the transaction void; the appearance of authority will operate to create an ESTOPPEL or bar preventing the principal from denying the existence of such authority. See AGENCY.
References in periodicals archive ?
In a sequence of recent rulings, the Dubai courts have made it clear that the doctrine of apparent authority extends to arbitration agreements regardless of the jurisdiction of company formation.
This authority may arise from your actual authority or your apparent authority.
Claimants are permitted to proceed with their claims of infringement on a number of methods of agency law, (19) but the three most traditional methods discussed in this Note are actual authority, apparent authority, and ratification.
21) Thus, courts have identified two basic agency law theories for holding a franchisor vicariously liable: establishing either the actual or the apparent authority of the franchisee to render its franchisor liable for its conduct.
5) The Ninth Circuit ultimately held that regardless of the conflicting interests of the corporation and its CEO, the corporation was liable for the actions of its CEO when he or she acts with apparent authority.
The Court of First Instance deemed the capacity of the First Partner, based on the apparent authority that he holds, sufficient to consider the contract as valid.
a seller may be liable for violations by its representatives under a broad range of agency principles, including not only formal agency, but also principles of apparent authority and ratification.
Moreover, " a seller may be liable for violations by its representatives under a broad range of agency principles, including not only formal agency, but also principles of apparent authority and ratification.
They omit how not even Hilbay-the NCCA's own counsel-defends this and justices seem to accept that the NCCA has no apparent authority under the National Cultural Heritage Act.
A consent to extend the limitation period for the assessment for partnership items signed by the tax matters partner of a partnership in his capacity as the tax matters partner of another partnership was valid because the individual had the apparent authority to sign the consent.
2) The ABA found that such collection letters "misuse the criminal justice system by deploying the apparent authority of a prosecutor" and "carry with them the implication that the prosecutor or associates in the prosecutors office have reviewed the facts and found that a crime has been committed and criminal prosecution is warranted," creating a false impression in violation of ABA Model Rule 8.
For investigators going into potentially dangerous situations, and for the people they contact, it is critical both parties be able to rely on identification and apparent authority to conduct the investigation.