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 ?
Specifically, the judge found insufficient facts to allege that Lot-2 Enterprises, the pool installer that the boy's grandmother picked from a list provided by the defendant, had actual or apparent authority to act as NAMCO's agent.
But citing Failla's ruling, Swift last week said the judge affirmed the settlement after finding that the Philippine attorney in New York "had actual and apparent authority to bind the Republic to the settlement.
In their joint statement, Swift, Domingo and Fruto said Failla found the January settlement agreement binding on all parties as the Philippine government's New York attorney had 'actual and apparent authority to bind the Republic to the settlement.'
1999), which instructs that a medical provider is liable if a patient reasonably relied on its apparent authority over the wrongdoer.
An agent can also bind a principal to a contract even if acting without actual authority, if the agent is acting with what is called "apparent authority." Of course, acting without actual authority can make the agent liable to the principal.
consented to let officers search the phone and that she had actual and apparent authority to do so.
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.
(46) This lack of public knowledge about the relationship between the franchising parties has led courts to deem franchisee use of the franchisor's trade name as grounds for finding apparent authority. (47) As a result of these two realities, the apparent agency doctrine is the theory that poses the greatest risk of vicarious liability for franchisors.
(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. (6)