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 ?
Yet, beyond tort liability debt, the franchisor would not be liable unless the typical forms of actual or apparent agency are present.
(13) Both counts alleged the same nine categories of negligent conduct, invoking the doctrine of actual agency and, alternatively, the theory of apparent agency. (14)
Therefore, the penetration of the transactions of an attorney after the client death should be clarified by an apparent agency conditioned to the commission during the transaction with other third parties virtually.
BWWI moved for summary judgment, arguing that it should not be held vicariously liable because the plaintiff had failed to show either actual or apparent agency. The court agreed.
Because the former partner appeared to be acting as an agent of the firm, the CPA firm could have been held vicariously liable to the client under the legal theory of "apparent agency." Given these exposure factors, the claim against the former partner and the CPA firm was eventually resolved for an amount that was well into the seven-figure range.
The court held, inter alia, that the alleged negligence of a physician whose purportedly negligent acts or omissions were not evaluated by the prelitigation screening panel may not later be brought into the litigation based on a theory of apparent agency. Because the jury's findings against the Center included both the professional negligence of the purported apparent agent, Dr.
LEGAL COMMENTARY: The allegedly negligent acts of a physician whose acts or omissions were not evaluated by the pre-litigation screening panel may not later he brought into the litigation, based on the theory of apparent agency. Because the jury's findings against CMMC included both the professional negligence of the purported apparent agent, Dr.
On the apparent agency issue, the court ruled against Foothill Thrift and in favor of the investors, because the loan proceeds were not used to further the business of Bodenwest, and it should have been obvious to Foothill Thrift that Bodenwest was not benefited by the loan.
Perpetual motion at its purest, perverse subtraction and addition, deprived of any apparent agency or metaphor through which to filter the viewer response, this profusion of home deco supplies and modernist utopian inferences is only faintly reminiscent of those "urban paths of decay and regeneration" to which the press release alludes.
The hospital's advertising, or "holding out," the provider's services is the essence of this apparent agency. Based on traditional agency principles, the hospital will be estopped from denying the relationship and will be held vicariously responsible for the provider's negligence.
The key issue as to whether the 'Borrowed Servant' Doctrine was applicable was whether the party utilizing the services of one who is not the party's employee or an independent contractor for whom the party may have liability under 'Apparent Agency' Doctrine or the 'Ostensible Agency' Doctrine.