Legal Definitions - constituted authority

Definition: Constituted authority refers to the legal power or permission given to a person or organization to act on behalf of another person or organization. This can include the power to affect legal relations, make decisions, and carry out actions.

Examples:

• Actual authority: This is authority intentionally given by a principal to an agent, either through express or implied agreement. For example, a company may give an employee the actual authority to sign contracts on their behalf.
• Apparent authority: This is authority that a third party reasonably believes an agent has, based on their dealings with the principal, even if the principal did not intend to confer the authority. For example, if a company allows an employee to act as a manager and make decisions on their behalf, even though they do not have the official title of manager, they may have apparent authority.
• Implied authority: This is authority intentionally given by the principal to the agent as a result of the principal's conduct, such as the principal's earlier acquiescence to the agent's actions. For example, if a company has allowed an employee to make decisions in a certain area of the business for a long time, they may have implied authority to continue making those decisions.

These examples illustrate how constituted authority can be given in different ways, either intentionally or unintentionally, and can be based on actual or perceived power.