Legal Definitions - constructive authority

Constructive authority is a type of authority that is inferred because of an earlier grant of authority. This means that even if the principal did not explicitly give the agent the authority to act, the agent may still have the authority to act based on the circumstances.

For example, if a principal gives an agent the authority to sell a car, the agent may also have the constructive authority to negotiate the price of the car. This is because negotiating the price is necessary to carry out the actual authority to sell the car.

Another example is if a principal gives an agent the authority to sign a contract, the agent may also have the constructive authority to make minor changes to the contract. This is because making minor changes is incidental to carrying out the actual authority to sign the contract.

Overall, constructive authority is a way to ensure that agents have the necessary authority to carry out their duties, even if the principal did not explicitly give them that authority.