#14 · 2026-08-20 · Legal term
Apparent authority
Apparent authority can bind a principal when the principal's manifestations reasonably lead a third party to believe the agent may act, even if the agent lacks actual authority. The agent's unsupported assertion alone is insufficient.
Rule to remember
Apparent authority is an agent's power to bind a principal when the principal's manifestations cause a third party reasonably to believe the agent is authorized.
Key elements and checks
- A manifestation attributable to the principal reaches the third party.
- The third party reasonably believes the agent has authority for the act.
- The transaction is within the scope of that reasonable belief.
In the source’s words
“This power arises only if a third party reasonably infers”
Cornell Wex — Apparent authority
This is distinct from actual authority, which centers on the agent's reasonable understanding, and ratification, which occurs after an unauthorized act.