Apparent Authority

Business, Legal & Accounting Glossary

Definition: Apparent Authority



What is the dictionary definition of Apparent Authority?

Dictionary Definition


n. the appearance of being the agent of another (employer or principal) with the power to act for the principal. 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 a 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.


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https://payrollheaven.com/define/apparent-authority/
Modern Language Association (MLA):
Apparent Authority. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. November 29, 2020 https://payrollheaven.com/define/apparent-authority/.
Chicago Manual of Style (CMS):
Apparent Authority. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/apparent-authority/ (accessed: November 29, 2020).
American Psychological Association (APA):
Apparent Authority. PayrollHeaven.com. Retrieved November 29, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/apparent-authority/

Definition Sources


Definitions for Apparent Authority are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 26th April, 2020 | 1 Views.