Apparent authority
Apparent authority protects third parties who reasonably rely on a person’s outward appearance of power to act for another.
In Swiss private law, representation normally requires actual authority or later approval. Apparent authority addresses situations where the principal’s conduct, organisation or silence creates a justified impression that an agent may act on its behalf. If the third party acts in good faith and reliance is attributable to the principal, the principal may be bound despite an internal lack of authority. The concept is closely linked to good faith, commercial certainty and the allocation of risks created by outward appearances.