The Rule in Turquand's Case
The rule in Turquand's case does not enable a third party to hold the company to an unauthorized transaction per se. It allows a third party to assume that a transaction which is within the authority of the directors has been properly authorized, but it requires the third party to establish the fact of authority, actual or apparent, in the first place.
Read more about this topic: Apparent Authority
Famous quotes containing the word rule:
“Roman, remember that you shall rule the nations by your authority, for this is to be your skill, to make peace the custom, to spare the conquered, and to wage war until the haughty are brought low.”
—Virgil [Publius Vergilius Maro] (70–19 B.C.)