Revoking Apparent Authority in Executive Severance Agreements
Apparent authority binds the principal to third parties until direct notice or administrative act extinguishes the reasonable belief of agency.
direct notice
Meaning
The formal communication of a legal or contractual event delivered directly to a specific recipient ensures that the target party receives critical information without intermediaries. This direct notice must be delivered according to the terms specified in the underlying agreement, which typically define acceptable methods such as registered mail or secure email. It establishes the exact moment when the recipient becomes responsible for responding to the information.
Delivery Method
The specific channel used to send the message determines its legal validity. To satisfy the requirements of direct notice, the sender must use the exact method agreed upon in the contract. If the agreement specifies certified mail, sending an email does not satisfy the requirement and may invalidate subsequent actions.
Receipt Date
The timing of the communication determines when notice periods begin to run. This date of direct notice is typically recorded on a return receipt or a digital tracking log. Accurate tracking of this date is necessary because it marks the start of the period within which the recipient must act to avoid default.
Proof Burden
The sender must be able to prove that the communication was received. When disputes arise over whether direct notice was given, the sender relies on delivery receipts to establish the fact. This paper trail represents the only acceptable evidence in a formal disagreement.