oral authorization
Definition
Oral authorization is permission you give someone verbally, by speaking, rather than writing it down and signing a document. It means you told someone they could do something on your behalf, like make a purchase or sign a contract, but you never put that agreement in writing.
Example
You call your business partner and tell them over the phone that they can go ahead and order $10,000 worth of equipment from a supplier, and that spoken approval counts as oral authorization.
Watch Out
Oral authorization is very hard to prove in court because it comes down to your word against someone else's, so always follow up verbal approvals with a confirming email or written agreement.
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.