Legal Definitions - authority

Authority, in a legal context, refers to the official right or permission to act, make decisions, or command others. It signifies the power to take actions that have legal consequences, often on behalf of another person or entity. When someone acts with proper authority, their actions are legally binding on the person or organization they represent. Conversely, if an individual acts without the necessary authority, or exceeds the scope of the authority they were given, their actions may not be legally valid or enforceable.

This concept is particularly crucial in situations where one person (an agent) acts for another (a principal). Authority can be established in different ways:

• Actual Authority: This is when a principal explicitly and directly grants an agent the power to perform specific actions. It's a clear, direct delegation of power, often communicated verbally or in writing.
• Apparent Authority: This arises when a third party reasonably believes that an agent has the authority to act, even if the principal never explicitly granted it. This belief is usually based on the principal's words, conduct, or the agent's position, which make it seem like the agent has the power.

Examples of Authority:

• Imagine an elderly individual, Sarah, signs a legal document called a Durable Power of Attorney, granting her niece, Emily, the power to manage all her financial affairs. This document explicitly states that Emily can pay bills, access bank accounts, and even sell property on Sarah's behalf. When Emily later sells a piece of Sarah's unused land to cover medical expenses, she is acting with actual authority because Sarah formally and directly delegated that specific power to her through the legal document.

• Consider a scenario where Mark, a sales manager for a large electronics company, regularly negotiates and finalizes contracts with clients, often offering standard discounts. His business cards identify him as "Sales Manager," and he has a dedicated office at the company headquarters. One day, Mark offers a new client, Jane, a 15% discount on a bulk order, and Jane signs the contract. Even if the company owner had privately instructed Mark not to offer more than a 10% discount that week, the company would likely be bound by the 15% discount. This is because Mark had apparent authority: Jane reasonably believed, based on Mark's title, office, and past behavior, that he had the power to offer such a discount, and the company's actions (or inactions) contributed to that reasonable belief.

• A local mayor issues an executive order to close all city parks for a week due to a public health emergency. The mayor's ability to issue such an order stems from the powers granted to their office by the city charter and state laws. This is an exercise of authority inherent in their position. If a different city official, like the head of the sanitation department, tried to issue a similar order, it would likely be invalid because that official lacks the legal authority associated with their role to make such a broad public health declaration.