Also known as: real authorities · actual authority
Written by attorneys · grounded in primary & secondary sources — see below
Authority that a principal intentionally confers on an agent or that the agent reasonably believes he or she possesses from dealings with the principal. Real authority can be either express or implied.
Rhea Reynolds retained counsel to handle her contract dispute with Redline Automotive. Her lawyer negotiated and signed a settlement agreement on her behalf after discussing terms with her in detail. When Rhea later refused to honor the agreement, the court enforced it against her because the lawyer possessed real authority to bind her.
After Lena suffered a stroke, the court appointed Mark conservator with power only to manage and preserve assets. Mark signed a deed conveying Lena's hotel without additional court approval. Lena later sued to set aside the deed because Mark lacked real authority to transfer title.
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Officers obtained consent from Mrs. Graff to search the bedroom she shared with Matlock. The court upheld the search because Mrs. Graff possessed real authority over the premises based on her joint control and relationship to the space.
A corporate officer transferred securities on behalf of Pacific Mutual Life Ins. Co. The purchaser later challenged the transfer. The court enforced the transaction because the officer had real authority from the company to make the warranties required under the UCC.
A state commission compelled testimony from a witness who feared self-incrimination. The court held that the commission possessed real authority to grant immunity, so the witness could not refuse to testify on Fifth Amendment grounds.
A bank employee claimed her supervisor created a hostile work environment. The court examined whether the supervisor acted with real authority from the employer when engaging in the alleged conduct.
Real authority exists when the principal intentionally grants power to the agent or the agent reasonably believes he possesses it from dealings with the principal. Apparent authority arises instead from the principal's manifestations to third parties that lead them to reasonably believe the agent has power.
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A conservator lacks real authority to convey real property when the court order limits the conservator to management and preservation without granting power to sell or encumber land. A deed executed without that authority is ineffective to transfer title.
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Membership in an LLC alone does not create real authority to bind the entity. The operating agreement must expressly grant agency power or elect manager-managed status for a member to possess actual authority to execute contracts on behalf of the LLC.
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…resident alien. The history of the Immigration and Nationality Act makes clear that § 244(c)(2) did not alter the division of actual authority between Congress and the Executive. At all times, whether through private bills, or through affirmative concurrent resolutions, or through the present one-House veto, a permanent change in…