In an LLC, binding authority arises from manifest assent by which party?

In an LLC, binding authority arises from manifest assent by which party?

• A. The person authorized to act for the LLC
• B. Any employee
• C. The board of directors
• D. The shareholder meeting

Answer: (A)

Binding authority in an LLC comes from the person authorized to act for the LLC. When that individual expresses assent to a contract or commits the LLC to a course of action, the LLC is bound—provided the action falls within the scope of the authority they have. This follows agency principles: the LLC is bound by the acts of someone authorized to represent it (a manager or member, depending on the LLC’s structure). An employee who hasn’t been given authority cannot bind the LLC just by acting on their own. And terms like a board of directors or shareholder meetings belong to corporations, not typical LLC governance, so they don’t specify who can bind the LLC.

Binding authority in an LLC comes from the person authorized to act for the LLC. When that individual expresses assent to a contract or commits the LLC to a course of action, the LLC is bound—provided the action falls within the scope of the authority they have.

This follows agency principles: the LLC is bound by the acts of someone authorized to represent it (a manager or member, depending on the LLC’s structure). An employee who hasn’t been given authority cannot bind the LLC just by acting on their own. And terms like a board of directors or shareholder meetings belong to corporations, not typical LLC governance, so they don’t specify who can bind the LLC.