An effective authority is authorized to act on behalf of another, with decisions legally binding and enforceable in court. Explicit written authority is safest, but implied or oral authority may also be valid. Written confirmation is recommended, and proof of authority may be requested.
An effective authority is a party authorized to act as an agent on behalf of another due to implicitly or explicitly delegated authority. This person can make decisions for the principal under the law. The term “express authority” may also be used in some settings, depending on terminology and regional preferences. Decisions made by this party are legally binding and can be enforced in court.
Ideally, an actual authority has written explicit authority from the principal, as this is the safest type of legal documentation on which to base legal power. For example, a supervisor might give a sales employee written authorization to discount sales prices in the event of a customer complaint. The clerk is an effective authority empowered to make discounts to satisfy customers. If an employer later takes the matter to court and claims that the employee acted outside the scope of authority, the court may decide that based on the documentation, the employee was not out of line.
In implied authority, specific authority is not delegated, but is implied by the nature of a contract or agreement because it is necessary to perform a task. In this example, a supervisor might indicate that employees can take reasonable steps to resolve customer complaints as quickly as possible. While an employee has not been granted explicit permission to offer a discount, the employee may decide to do so because this may be the quickest resolution to a complaint.
It is possible to act as an effective authority with oral permission, although this can be a problem if an agent’s activities are later challenged in court. If a person gives oral permission to an agent, it may be a good idea to follow up with written confirmation of the agent’s records. In the event of a dispute, this document provides evidence that both parties understand the extent and limitations of the authority. Otherwise, a case may become one that relies heavily on witness testimony and witnesses are not always reliable.
When in doubt as to whether a representative is an actual authority, people can ask for confirmation. This could include something like a guarantee card or employee identification to assure one party to an argument that the agent accurately represents a third party. Similarly, attorneys and individuals acting as agents such as health care proxies may bring copies of legal documents delegating authority. These documents serve as proof that someone is dealing with an effective authority that he is legally empowered to make decisions about.
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