actual authority

Actual authority is the power a person has to act on behalf of another, typically granted explicitly by the person or organization they represent. It can be expressed through direct instructions or implied by the role or relationship. For example, a manager has actual authority to make certain decisions for their team. This authority allows the agent to bind the principal in those actions, meaning the principal is legally responsible for what the agent does within their authorized scope. In essence, actual authority is the genuine permission given to someone to act on another's behalf.