How Do You Spell AUTHORITY BY ESTOPPEL?

Authority by estoppel is a legal principle that arises in situations where an individual or entity is given the appearance of having authority to act on behalf of another person or organization. It is a type of authority that is not actually granted or bestowed upon someone by law or written agreement, but rather arises from the actions, statements, or conduct of the party who would normally have the authority to grant such power.

In simpler terms, authority by estoppel occurs when someone acts in a certain way or leads others to believe that they have the authority to act on behalf of another, and as a result, they are bound by the decisions or actions made by those who rely on that appearance of authority. This principle is typically invoked to prevent a person or organization from denying the authority of someone who acted on their behalf, even if they did not actually possess the legal authority to do so.

To establish authority by estoppel, several conditions must be met:

1. Representation: The alleged authority figure must make representations or statements that lead others to believe they have the authority to act.

2. Reliance: The party who relies on these representations must reasonably believe that the person has authority.

3. Detrimental reliance: The party relying on the representations must suffer some form of harm or detriment as a result of their reliance.

Overall, authority by estoppel provides a measure of protection for those who innocently rely on the representations or actions of others who appear to have the authority to act on behalf of another person or organization.