Actual authority definition
Actual authority means what it says: a principal has expressly communicated to an agent, normally through spoken words or in writing, the power to perform some act on the principal’s behalf.64
Actual authority means, as the words connote, author- ity that the principal, expressly or implicitly, gave the agent. “Apparent authority” arises when a principal acts in such a manner as to convey the impression to a third party that an agent has certain powers which he may or may not actually possess. “Implied authority” has been variously defined. It has been held to be actual authority given implicitly by a principal to his agent. Another definition of “implied authority” is that it is a kind of authority arising solely from the designation by the principal of a kind of agent who ordi- narily possesses certain powers. It is this concept that is called “inherent authority” by the Restatement. In many cases the same facts will support a finding of “inherent” or “apparent agency.” Usually it is not necessary for a third party attempting to hold a principal to specify which type of authority he relies upon, general proof of agency being sufficient. Pacific Mut. Life Ins. Co. of California v. Barton, 5 Cir., 1931, 50 F.2d 362, certiorari denied 1931, 284 U.S.
Examples of Actual authority in a sentence
Actual authority may also arise by operation of law (e.g., your CEO or Chairman of your Board of Directors) in addition to any of the foregoing.
Actual authority is that authority which the agent reasonably thinks he possesses, conferred either intentionally or by want of ordinary care by the principal.
Actual authority, express or implied, is binding as between the company and the agent, and also as between the company and others, whether they are within the company or outside it.
Actual authority – If a partner has actual authority, the other partners are bound by the partner’s acts.