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Simple English definitions for legal terms
ostensible authority
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A quick definition of ostensible authority:
Term: Ostensible authority
Definition: Ostensible authority is another term for apparent authority. This means that someone may appear to have the power to make decisions or take actions on behalf of another person or organization, even if they do not actually have that power. It's like when a friend tells you they have permission to use their parent's car, but they really don't. They may seem like they have the authority to let you use the car, but in reality, they don't have the power to make that decision.
A more thorough explanation:
Definition: Ostensible authority, also known as apparent authority, refers to the authority that a third party believes an agent has based on the actions or words of the principal. This authority may not actually exist, but the third party is led to believe that it does.
Example: A company hires a salesperson to sell their products. The salesperson tells a potential customer that they can offer a discount on the product. The customer believes that the salesperson has the authority to offer the discount because they are representing the company. However, the salesperson did not actually have the authority to offer the discount, and the company is not obligated to honor it.
Explanation: In this example, the salesperson did not have the actual authority to offer the discount, but the customer believed that they did because they were representing the company. This is an example of ostensible authority because the third party (the customer) believed that the agent (the salesperson) had the authority to offer the discount based on the actions of the principal (the company).