Apparent Authority

Also known as ostensible authority, apparent authority is a type of authority in agency law that refers to the authority that a principal appears to have given to an agent to act on their behalf. This authority is created when the principal, by words or conduct, leads a third party to believe that the agent has the authority to act on their behalf, even if the agent does not actually have that authority.

Apparent authority can arise in a number of different ways. For example, if a principal allows an agent to use their business card, or if the agent is introduced to a third party as a representative of the principal, the third party may reasonably believe that the agent has the authority to act on the principal's behalf. Similarly, if a principal allows an agent to make decisions and take actions that are typically within the scope of the principal's authority, the agent may be deemed to have apparent authority to act on the principal's behalf.

It is important to note that apparent authority is not actual authority, and it does not require the principal to have actually given the agent the authority to act on their behalf. Instead, it is based on the principle of estoppel, which prevents the principal from denying that the agent had the authority to act on their behalf, if the principal led the third party to reasonably believe that the agent had such authority.

If a third party relies on the apparent authority of an agent and suffers harm as a result of the agent's actions, the principal may be held liable for that harm. However, for the doctrine of apparent authority to apply, the following three elements must be present:
  1. The principal must have made representations to the third party that led the third party to believe that the agent had the authority to act on the principal's behalf;
  2. The third party must have reasonably relied on those representations in dealing with the agent; and
  3. The agent must have taken actions that were within the scope of the apparent authority created by the principal's representations.

Apparent authority is an important concept in agency law, as it allows third parties to rely on the representations of the principal in dealing with the agent. By providing a way for third parties to hold principals accountable for the actions of their agents, the doctrine of apparent authority helps to ensure that businesses and other organisations act responsibly in their dealings with the public.
Back to blog

UOL Case Bank

Upon joining, you become a valuable UOL student and gain instant access to over 2,100 essential case summaries. UOL Case Bank is constantly expanding. Speed up your revision with us now.

Subscribe Now

Where are our students from?

Council of Europe
Crown Prosecution Service
Baker Mckenzie 
Yale University
University of Chicago
Columbia University
New York University
University of Michigan 
INSEAD
University of London
University College London (UCL)
London School of Economics (LSE)
King’s College London (KCL)
Royal Holloway, University of London 
Birkbeck, University of London
SOAS, University of London
University of Manchester
University of Zurich
University of York
Brandeis University
University of Exeter
University of Sheffield
Boston University
University of Washington
University of Leeds
University of Law
University of Kent
University of Hull
Queen’s University Belfast
Toronto Metropolitan University
Hong Kong University of Science and Technology
University of Buckingham
ESSEC Business School

  • Criminal Practice

    Diagrams and Charts

    Our carefully designed diagrams and charts will guide you through complex legal issues.

  • Criminal Law

    Clear and Succinct Definitions

    Key concepts are concisely defined to help you understand legal topics quickly.

  • Property Law

    Statutory Provisions

    Statutory provisions are provided side by side with legal concepts to help you swiftly locate the relevant legislation.

  • Public Law

    Case Summaries

    We have summarised important cases for you so that you don't need to read long and boring cases.

  • Evidence

    Rules and Exceptions

    Rules and exceptions are clearly listed so that you know when a rule applies and when it doesn't.

  • Company Law

    Terminology

    Legal terms and key concepts are explained at the beginning of each chapter to help you learn efficiently.

  • Case Law

    Case law is provided side by side with legal concepts so that you know how legal principles and precedents were established.

  • Law Exam Guide

    Law Essay Guide

    You will learn essential law exam skills and essay writing techniques that are not taught in class.

  • Law Exam Guide

    Problem Question Guide

    We will show you how to answer problem questions step by step to achieve first-class results.

  • Conflict of Laws

    Structured Explanations

    Complex legal concepts are broken down into concise and digestible bullet point explanations.

  • Legal System and Method

    Legal Research

    You will learn legal research techniques with our study guide and become a proficient legal researcher.

  • Jurisprudence and Legal Theory

    Exam-focused

    All essential concepts, principles, and case law are included so that you can answer exam questions quickly.