Apparent Authority Legal Meaning and Definition

Here is a simplified definition of the legal term Apparent Authority.

Apparent Authority (noun): Represents a legal concept in which an individual is believed to have the authority to act on behalf of another party, typically an organization, due to their displayed behavior or information given, even if they don't have actual authority. This apparent authority can lead others to reasonably believe that a relationship of authority exists. Unlike 'assigned risk' in insurance laws, which deals with obligatory insurance coverage, 'apparent authority' relates to the perceived power or control an individual has to make decisions for another party.