authorized purpose
Definition
An authorized purpose is the specific, approved reason why someone is allowed to use, access, or handle something — like money, information, or property. When you give someone permission to act on your behalf or use your resources, that permission only covers the exact reason you agreed to, not anything beyond it. Acting outside that approved reason can create legal problems for both parties.
Example
If you give an employee access to your business bank account to pay vendors, that is the authorized purpose, so using that access to buy personal items would be a clear violation.
Watch Out
Make sure any agreement or contract you sign clearly spells out the authorized purpose in writing so there is no confusion about what someone is and is not allowed to do with your information, money, or resources.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.