The term presumed authority means that someone seems to have the power to do something on behalf of another. The term “presumed authority” is used interchangeably with “apparent authority”. In agency law, if someone appears to be duly authorized to represent a business entity, corporation or individual, then that person (the representative) has the “purported power” to legally bind the corporation (principal). n. a person who has been given the appearance of an employee or (agent) acting for another (principal), which would reasonably lead any person dealing with the alleged agent to believe that he or she was an employee or agent. This could include giving the alleged agent stationery or forms from the company, letting him use the company`s car, phone or desk in the company`s office. Companies must be careful not to allow situations where an alleged agent could bind the company to a contract or hold the apparent employer liable for damages caused by an accident, defamation or attack by the “agent”. We will examine the definition of presumed authority and what it implies. Ostensibly comes from the Latin ostendere, meaning “to show,” and the word suggests a discrepancy between a stated or implicit goal or reason and the true one.
The circumstances, as well as a person`s actions, behaviours, statements and manifestations, may lead a reasonable person to believe that he or she has the authority to act (and possibly legally bind) another person. French, from the Latin ostensus, past participle of ostendere show, de obs-, ob- dans la voie + tendere pour éstretch â plus à ob-, thin a word used to describe something that is obvious and obvious. In other words, from the perspective of a third party, one person reasonably appears to have the power to bind another. Superficial authority refers to “apparent authority” when an agent appears to have the power to act (not necessarily the actual power to do so).
