actual authority
The power an agent genuinely has because the principal expressly granted it or clearly implied it.
Definition
Actual authority is the real permission a principal has given an agent. It may be express, spelled out in a contract or instruction, or implied, because the task reasonably requires certain steps. When an agent acts within actual authority, the principal is bound by the result. Disputes often turn on what was really authorized, which is why written scopes of work, approval rules and spending limits are useful. If an agent goes beyond actual authority, the principal may still be bound in some circumstances through apparent authority. Jurisdictions treat the details differently, so this is a general explanation only.
In a sentence
The agency had actual authority to book media up to the approved budget.
Spending limits written into the contract define the edges of actual authority.
