Grant of Authority
A legal authorization that allows a person or entity to act on behalf of another in specified matters.
What is Grant of Authority?
A Grant of Authority is a legal document or provision that empowers an individual or entity to act on behalf of another in specific matters, such as signing contracts, managing assets, or making decisions.
Why It Matters?
It clarifies who has decision-making power, prevents unauthorized actions, and provides a legal basis for binding agreements or transactions.
Example
A company issues a grant of authority to its CFO, allowing them to sign vendor contracts and approve expenditures within set limits.
Related Terms
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Litigation