However, both of types of actual authority require a consensual agreement between the agency or company and the third party agent. There are two types of actual authority, expressed and implied. This may lead customers to believe he has the authority to give them a price quote.
Actual definition driver#
While he does not have the actual authority to do this, his position as the floral company’s delivery driver grants him apparent authority. He does not have actual authority to order materials, arrange flowers, or price the items, but when an occasion arises, he gives a price quote to a customer on a flower order. Any actions taken under apparent authority may not be legally binding.Ī man works for a local flower delivery company. This may be a result of the third party’s verbal or circumstantial representation, such as presenting business cards, stationary, or simply stating he represents the company. Apparent authority is a concept used to refer to a situation that arises when a company or agency assumes that a third party or agent has the authorization to act on behalf of the company he is representing, though that third party had not been appointed to such representation. While actual authority requires a third party to have been officially granted the authority to act on behalf of a company, apparent authority does not require an official granting of power. Apparent AuthorityĪctual authority differs from apparent authority, though some may consider the differences minor. This would be a valuable protection for the employee if the owner tries to file criminal or civil charges. In the event that something occurs, such as the employee being fired or the company suffering an immediate financial loss, having written actual authority could prevent the owner from claiming that the employee acted outside the scope of his duties. Written actual authority creates legal documentation from which the legal powers derive.įor example, if a store owner gives the night clerk permission to drop prices on certain items, the clerk has actual authority to do so. Though a person acting under actual authority is not required to have the authority put in writing, doing so can help avoid any legal issues that may arise later. The powers may be broadly defined, or very specific. Specific powers granted to a third party by a company, agency, or organization in oral or written form.
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