Simple definition
Legal or organizational power to take an action or enter an agreement.
Corporate
What Does Authority Mean?
Legal or organizational power to take an action or enter an agreement.
Example in a contract
A contract may use “authority” when describing legal or organizational power to take an action or enter an agreement.
What authority means in a contract
In a contract, this term should be read in the context of the surrounding clause, defined terms, cross-references, and governing law.
Why it may matter
Its practical effect depends on the exact wording and how it connects to the rights and obligations elsewhere in the agreement. Review the exact language rather than relying on the label alone.
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FAQ
Questions about authority.
What does authority mean in plain English?+
Legal or organizational power to take an action or enter an agreement.
Where might authority appear in a contract?+
In a contract, this term should be read in the context of the surrounding clause, defined terms, cross-references, and governing law.
Is this definition legal advice?+
No. ClauseInsight provides concise informational explanations. The legal effect of a term depends on the complete document, facts, and applicable law.