ostensible authority


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ostensible authority

The illusion of having the authority to act as an agent on behalf of a principal.It can be created because the agent gives that impression and the principal does nothing to correct the misperception,or because the principal itself creates that impression in others. Either way, the principal will be bound by the actions of the agent if a court finds that ostensible authority existed.

References in periodicals archive ?
Mr Leviev further submitted that General Kopelipa was not expressly authorised by him, because Mr Gaydamak constituted General Kopelipa as his agent first, and, that ostensible authority was almost impossible in the case of a one-off agent, such as General Kopelipa.
Furthermore, General Kopelipa could not have had ostensible authority to make the representations (had they been made).
In Gaydamak various refined issues relating to the law of agency, actual and ostensible authority, fraudulent misrepresentation, consideration, entire agreement and intention to create legal relations rubbed shoulders with a net of colourful if shadowy facts.
On appeal, Justice Estey for the majority of the Supreme Court held that CanLab had made no representations to Engelhard as to Cook's authority until the referral was made (to Cook) after Engelhard's original inquiry in October 1966 about the timing of payments, thereby equipping Cook with ostensible authority to act from that point on.
Fridman remarks that "[i]f an agent did not have ostensible authority to enter into a transaction .
Lord Keith for the Law Lords observed that an agent's ostensible authority may arise where the agent has had a course of dealing with a particular third party and the agent's principal has acquiesced to the dealing and has honoured transactions that have previously arisen from it.
Her Honour argued that the doctrine of ostensible authority used in Lloyd is a species of estoppel, and that the only principled way to have vicarious liability for an intentional act is on the basis of estoppel.
Thus their Honours would limit situations where vicarious liability could arise to those where there was activity in intended pursuit or performance of the contract of employment or actively done with ostensible authority.
The Court of Appeal in Western Fish Products Ltd v Penwith District Council, referring to Lord Denning's statement in the Lever (Finance) case, said: (6) `It is not an authority for the proposition that every representation made by a planning officer within his ostensible authority binds the planning authority which employs him.
In the recent case of Downderry Construction Limited v Secretary of State for Transport, Local Government and the Regions and Caradon DC, (7) the Court of Appeal's judgment in Western Fish was relied on by the judge as authority for the proposition that for an estoppel by representation to arise from the statement of a planning officer it was necessary to establish both that the officer was acting within the scope of his ostensible authority and that the person dealing with the officer was justified in thinking that what the officer said would bind the authority.
It is respectfully submitted that had the plaintiff been able to prove that as a result of her seeing the hospital presenting itself to the community as a birthing hospital, and she, acting in reliance thereon, chose to deliver her child at the hospital, the plaintiff would have had a much stronger case of either apparent or ostensible authority.