Legal Definitions - institorial power

Definition: Institorial power is the power given by a business owner to an agent to act on behalf of the owner. It is a type of civil law power.

Example: A business owner may give institorial power to an employee to make purchases on behalf of the business. The employee can act as an agent of the owner and make decisions related to purchasing without the owner's direct involvement.

Explanation: Institorial power allows a business owner to delegate certain tasks to an agent, such as an employee, and trust that they will act in the best interest of the business. The agent has the authority to make decisions related to their assigned tasks without needing to consult the owner for every decision. This type of power is common in business settings and helps to streamline decision-making processes.