Agency Authority
/ˈeɪdʒənsi ɔːˈθɒrɪti/
Definitions
- (n.) The legal power granted to an agent to act on behalf of a principal in transactions and decisions.
The agency authority allows the agent to negotiate contracts for the company.
- (n.) The scope within which an agent can legally bind the principal to third parties.
Exceeding the agency authority may result in the agent being personally liable.
Forms
- agency authority
Related terms
See also
Commentary
Agency authority is critical in defining the limits of an agent’s power; drafters should clearly specify whether authority is actual or apparent to avoid disputes.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.