Contractual Authority
/kənˈtræktʃuəl əˈθɒrɪti/
Definitions
- (n.) The legal power granted to an individual or entity to enter into binding contracts on behalf of another party.
The manager acted within his contractual authority when signing the agreement.
- (n.) The scope of rights and limits prescribed by law or agreement under which contracts may be validly executed.
Exceeding contractual authority may render a contract voidable.
Forms
- contractual authority
Related terms
See also
Commentary
Contractual authority is often delineated in agency law, with clear distinctions between actual and apparent authority important for contract validity.
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.