Legal Definitions - scope of authority

Definition: The range of reasonable power that an agent has been delegated or might foreseeably be delegated in carrying out the principal's business.

For example, if a company hires a salesperson to sell their products, the scope of authority for that salesperson would include negotiating prices, closing deals, and providing customer service. However, the salesperson would not have the authority to make major decisions about the company's finances or operations.

Another example would be a property manager who is hired by a landlord to manage their rental properties. The scope of authority for the property manager would include collecting rent, handling maintenance requests, and screening potential tenants. However, the property manager would not have the authority to sell the properties or make major renovations without the landlord's approval.

These examples illustrate how the scope of authority is limited to the specific tasks and responsibilities that the agent has been delegated or might foreseeably be delegated in carrying out the principal's business. It is important for both the principal and the agent to understand the scope of authority to avoid any misunderstandings or legal issues.