Legal Definitions - examining authority

Examining authority refers to the power or permission given to someone to act legally on behalf of another person or entity. This can include the power delegated by a principal to an agent to affect legal relations. There are different types of authority, including:

• Actual authority: Authority intentionally given by the principal to the agent or authority that the agent reasonably believes they have as a result of their dealings with the principal.
• Apparent authority: Authority that a third party reasonably believes an agent has, based on their dealings with the principal, even though the principal did not confer or intend to confer the authority.
• Implied authority: 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 person hires a real estate agent to sell their house, the agent has actual authority to sign a contract with a buyer on behalf of the seller. If a third party, such as a potential buyer, reasonably believes that the agent has the authority to sell the house, even if the seller did not explicitly give them that authority, the agent has apparent authority. If the seller has previously allowed the agent to make decisions about the sale of the house, the agent may have implied authority to make decisions about the sale.

Examining authority can also refer to a self-regulatory organization registered with the Securities and Exchange Commission that oversees the activities of a registered broker or dealer.

Finally, authority can also refer to a legal writing, such as a judicial or administrative decision, that is taken as definitive or decisive. This can include primary authority, such as legislation and reports of litigated cases, or secondary authority, such as treatises or law-review articles.