In this video, I discuss apparent authority in agency law.
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"Apparent authority" is a legal concept where a person (the agent) has the power to act on behalf of another (the principal), even if they don't have explicit permission, because the principal's actions have led others to reasonably believe that the agent has such authority. This is different from "actual authority," where the agent has explicit permission from the principal.

In apparent authority, the principal's behavior or lack of action (like not correcting false assumptions) leads others to believe the agent has authority. This is not based on the agent's own claims but on how the principal's actions are perceived.

Let's consider a different example to illustrate apparent authority:

Example:
Sarah owns a clothing boutique and hires Chris to manage it. Sarah introduces Chris to her suppliers and clients as the manager responsible for orders and negotiations. One day, Chris signs a contract with a new supplier for a large order of materials. Although Sarah never explicitly told Chris he could sign such contracts, her introduction of Chris as the manager in charge of orders and negotiations could create the impression among suppliers that Chris has the authority to make such deals. Therefore, despite not having actual authority to sign the contract, Chris might have apparent authority due to Sarah's actions, binding her to the contract. If Sarah disagrees with Chris's decision, she may hold Chris accountable for overstepping his bounds, but the supplier can still expect Sarah to honor the contract based on the apparent authority she conferred on Chris.


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