Apparent Authority in UK Law

Leading Cases
  • Freeman & Lockyer (A Firm)(Plaintiffs) Buckhurst Park Properties (Mangal) Ltd and Shiv Kumar Kapoor (Defendants)
    • Court of Appeal
    • 24 Ene 1964

    An "apparent" or "ostensible" authority, on the other hand, is a legal relationship between the principal and the contractor created by a representation, made by the principal to the contractor intended to be and in fact acted upon by the contractor, that the agent has authority to enter on behalf of the principal into a contract of a kind within the scope of the "apparent" authority, so as to render the principal liable to perform any obligations imposed upon him by such contract.

    The representation which creates "apparent" authority may take a variety of forms of which the commonest is representation by conduct, that is by permitting the agent to act in some way in the conduct of the principal's business with other persons.

    He can rely only upon a representation by a person or persons who have actual authority to manage or conduct that part of the business of the corporation to which the contract relates.

    Thus, if in the case of a company the board of directors who have "actual" authority under the memorandum and articles of association to manage the company's business permit the agent to act in the management or conduct of the company's business, they thereby represent to all persons dealing with such agent that he has authority to enter on behalf of the corporation into contracts of a kind which an agent authorised to do acts of the kind which he is in fact permitted to do normally enters into in the ordinary course of such business.

  • Hely-Hutchinson v Brayhead Ltd
    • Court of Appeal (Civil Division)
    • 22 Jun 1967

    It is implied when it is inferred from the conduct of the parties and the circumstances of the cape, such as when the board of directors appoint one of their number to be managing director. They thereby impliedly authorise him to do all such things as fall within the usual scope of that office. Actual authority, express or implied, is binding as between the company and the agent, and also as between the company and others, whether they are within the company or outside it.

    Ostensible or apparent authority is the authority of an agent as it appears to others. Thus, when the board appoint one of their number to be managing director, they invest him not only with implied authority, but also with ostensible authority to do all such things as fall within the usual scope of that office. But sometimes ostensible authority exceeds actual authority.

  • Hillen and Pettigrew v I.C.I. (Alkali) Ltd
    • House of Lords
    • 04 Jul 1935

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Legislation
  • Partnership Act 1890
    • UK Non-devolved
    • 1 de Enero de 1890
    ......and Commons, in this present Parliament assembled, and by. the authority of the same, as follows:. . Nature of Partnership. . Nature of ...apparently not connected with the firm's ordinary course of business,. the firm is ......
  • Carriage of Goods by Sea Act 1992
    • UK Non-devolved
    • 1 de Enero de 1992
    ......, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—. S-1. Shipping documents etc. to which Act ...person who was not the master but had the express,. implied or apparent authority of the carrier to sign. bills of lading,. shall, in favour of a ......
  • Consumer Rights Act 2015
    • England & Wales
    • 1 de Enero de 2015
    ......, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:- . 1 . Consumer contracts for goods, digital ... of a contract to supply goods by sample, which would have been apparent on a reasonable examination of the sample. . (5) The relevant ......
  • Entail Amendment Act 1848
    • UK Non-devolved
    • 1 de Enero de 1848
    ......  Parliament assembled, and by the Authority of the same, That where any Estate in Scotland . shall be. entailed by a ..., and not otherwise, of the Heir next in succession, being Heir Apparent under the Entail of the Heir in possession, to acquire such Estate, in ......
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Books & Journal Articles
  • Reluctant Bedfellows: Want of Authority and Knowing Receipt
    • Núm. 75-1, Enero 2012
    • The Modern Law Review
    The case note examines the recent decision of the Hong Kong Court of Final Appeal in Thanakharn Kasikorn Thai Chamkat (Mahachon) v Akai Holdings Ltd, where Lord Neuberger of Abbotsbury adopted the ...
    ......) v Akai Holdings Ltd , where Lord Neuberger of Abbotsbury adopted the test of irrationality in determining whether a defaulting agent had apparent authority to act on behalf of his principal to confer benefits on a third party.His Lordship further held that a concurrent claim in knowing receipt ......
  • Syntagmatic relationships and indexing consistency on a larger scale
    • Núm. 64-4, Julio 2008
    • Journal of Documentation
    • 602-615
    Purpose: The purpose of this article is to examine interindexer consistency on a larger scale than other studies have done to determine if group consensus is reached by larger numbers of indexers a...
    ......apparent authority of communally developed information resources, communally ......
  • BUREAUCRACY IN A COLLEGE OF ADVANCED EDUCATION
    • Núm. 12-2, Febrero 1974
    • Journal of Educational Administration
    • 123-134
    This paper reports the results of a questionnaire survey of academic staff at the Western Australian Institute of Technology (WAIT). On the question of bureaucracy in its technical rather than its ...
    ...... O n thre e dimensions , th e hierarch y o f authority , rule s coverin g right s an d dutie s an d system s o f ......
  • Parad0x and Pragmatism: ?Virtual Immunities' and the Imposition of Liability in Negligence Claims Against Local Authorities
    • Núm. 4-1, Enero 2014
    • Southampton Student Law Review
    • David Humphreys
    • 63-84
    The field of public authority liability has attracted much attention through apparent uncertainty of law. The issue of immunity for local authorities, due to policy considerations, has received div...
    ...... sid er th e 1 Lord Hoffman, ‘Refor ming the Law of Public Authority Negli gence’ (The Bar Council La w Reform Lecture 2009); Law ......
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Law Firm Commentaries
  • Directors' Apparent Authority
    • Mondaq United Kingdom
  • What Did You Intend? Negotiators Beware
    • Mondaq United Kingdom
    ...... who attended the September 2003 meeting on their behalf had no authority to enter into a binding contract. MUL accepted that the individual in ... representative did have authority and on that basis, there was apparent authority. The Court reiterated that apparent or ostensible authority can ......
  • Real Estate - Tip Of The Week: Contracting Out Of The 1954 Act
    • Mondaq UK
    ...... The court held:. The tenant's solicitor had actual or apparent authority to do everything necessary to bring to completion a transaction ......
  • Insurer's Duty - Ramsook v Crossley
    • Mondaq UK
    ...... the proceedings had been conducted in her name but without her authority. The judgment was set aside and the appeal from that decision was ... to the clause in the policy, the insurers had had actual and apparent authority to take all the normal steps that the insured might take, ......
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