What is another term for apparent authority?

Apparent authority is commonly referred to as ostensible authority. This concept arises in the context of agency law, where a principal may lead a third party to reasonably believe that an agent has the authority to act on the principal's behalf, even if the agent does not actually have that authority. This can occur through the principal's actions, statements, or behavior that creates a perception of authority.

When a third party relies on this apparent authority in their dealings with the agent, the principal may be bound by the actions taken by the agent, despite any internal agreements or discussions that may limit the agent's authority. This serves to protect the interests of third parties who have engaged in good faith transactions, ensuring they are not unfairly harmed by internal disputes regarding authority.

The other terms presented do not accurately reflect the concept of apparent authority. Theoretical authority refers more to hypothetical situations, legal authority pertains to authority as conferred by law, and express authority involves specifically stated powers granted to an agent. None of these capture the essence of how apparent authority operates in practice, thus affirming that ostensible authority is the correct term.