Binding authority

Have you ever played a game where you have to follow the rules set by someone else, like a teacher or a parent? Well, binding authority is kind of like that. It means that somebody has the power to make the rules, and those who have to follow them have to do so, no matter what.

In the business world, there are people who have the authority to make important decisions that everyone else has to follow. Sometimes these people are the bosses or the managers, and sometimes they might be people who work for the company, like a lawyer or an agent.

When these people make decisions or give instructions, they have what's called binding authority. That means that everyone else who works for the company has to obey their instructions, even if they don't necessarily agree with them.

Binding authority is important because it helps businesses run smoothly and efficiently. If everyone could just do whatever they wanted, it would be chaos! So, having clear rules and instructions that everyone has to follow is really important for getting things done and making sure everybody is working together as a team.