apparent authority

Apparent authority refers to a situation where a person seems to have the authority to act on behalf of another, even if they don’t actually hold that authority. This can happen when a company's actions or communications lead others to reasonably believe that someone is authorized to make decisions or commitments. For example, if a manager frequently signs contracts, a client might assume that a new employee can also sign contracts, even if they are not authorized. In these cases, the employer may still be held responsible for the actions of the employee due to this perceived authority.