Simple English definitions for legal terms
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Definition: Real authority is the power given to an agent by a principal to act legally on their behalf. It includes the right to affect the principal's legal relations through actions done in accordance with the principal's assent. Real authority can be either actual or implied.
Examples: Actual authority is intentionally given by the principal to the agent, either through express agreement or by allowing the agent to believe they have the authority. Implied authority is intentionally given by the principal through their conduct, such as acquiescence to the agent's actions. For example, if a principal hires an agent to sell their house, the agent has real authority to sign the contract on behalf of the principal if the principal has given them express or implied authority to do so.
Another example of real authority is apparent authority, which is the authority that a third party reasonably believes an agent has based on their dealings with the principal, even if the principal did not intend to confer the authority. For instance, if a principal allows their employee to act as their agent in a business transaction, the employee may have apparent authority to make decisions on behalf of the principal.
Explanation: Real authority is the legal power given to an agent by a principal to act on their behalf. It can be either actual or implied, and includes the power to affect the principal's legal relations. The examples illustrate how real authority can be given intentionally or unintentionally, and how it can be inferred from the principal's conduct or the third party's reasonable belief. Understanding real authority is important in determining the legal rights and obligations of the principal and the agent in a given situation.