apparent authority

apparent authority definition - business

apparent authority

Responsibility of a principal when a third party has reason to believe that an agent of the principal has authority to bind the principal. For example, a customer (third party) may believe that a salesperson (agent) has the authority to quote a price that commits his employer (principal).

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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