Also known as: praepositi negotiis · agent · procurator
Written by attorneys · grounded in primary & secondary sources — see below
A person appointed to manage or conduct the business affairs of another.
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Prime Logistics appointed Pierce Patterson to oversee all vendor negotiations and contract preparations. Patterson drafted internal memos analyzing potential litigation risks from a disputed shipment. When Progressive Healthcare sought those memos in discovery, the court denied the request because Patterson acted as praepositus negotiis preparing materials in anticipation of litigation.
Phoenix Technologies designated Paige Porter to handle customer complaints and warranty claims. Porter told a buyer that a product defect was known company-wide. At trial the buyer offered Porter's statement against Phoenix Technologies, which the court admitted because Porter spoke as praepositus negotiis on a matter within her ongoing employment duties.
Prosperity Investments hired Philip Powell to manage its real-estate acquisitions on an ongoing basis. Powell negotiated and signed multiple purchase agreements over two years. When a seller challenged one contract, the court enforced it because Powell's continuous role as praepositus negotiis established him as a general agent.
Peter Park and Piper Patel formed a consulting partnership. Park, acting as praepositus negotiis for routine client engagements, signed a service contract in the partnership name. The client later sued the partnership for performance, and the court held the partnership bound because Park's act appeared to carry on ordinary partnership business.
Phoebe Park, trustee of a family trust, selected an investment advisor to manage trust assets. The advisor's decisions later drew scrutiny from beneficiaries. The court upheld the delegation because Phoebe exercised reasonable care in choosing the praepositus negotiis and monitored performance as required.
After arrest, Pierce Patterson spoke with a government agent he knew was investigating his company. The government later sought to introduce the substance of that conversation at trial. The court ordered disclosure because the statement was made to a known government agent acting as praepositus negotiis and the government intended to use it.
The term identifies a person placed in charge of another's business, which corresponds directly to the definition of an agent who has authority to act on the principal's behalf in ongoing affairs.
Supporting sources
Apparent authority arises only when the principal's manifestations lead a third party to reasonably believe the person in charge has authority to bind the principal. The mere appointment alone does not automatically create it.
Yes, when the person acts for apparently carrying on the partnership business in the ordinary course, the act binds the partnership unless the third party knew of a lack of authority.
…of two kinds and he exercises functions in two distinct capacities: as a public ministerial officer of the United States and as agent of the President. In the first capacity his duty is to the United States or its citizens; in the other his duty is to the President. In the former capacity he is compellable by mandamus to…