#22 · 2026-08-28 · Legal term
Actual authority
Actual authority exists because the principal's manifestations give the agent power to act, expressly or by implication. Apparent authority instead focuses on the third party's reasonable understanding of the principal's manifestations.
Rule to remember
Actual authority is an agent's power, created by the principal's manifestations to the agent, to take actions the agent reasonably understands the principal has authorized.
Key elements and checks
- A principal's manifestation to the agent.
- The agent's reasonable understanding of the granted scope.
- An act within express or implied authorization.
In the source’s words
“Actual authority is expressly or explicitly delegated by a principal to an agent.”
Cornell Wex — Authority
Do not confuse actual authority with apparent authority, which centers on a third party's reasonable belief, or with later ratification.