Absolute Discretion:
Noun. The unrestricted authority or power granted to an individual or entity to make decisions or take actions without any external influence, interference, or limitations. It implies complete freedom and autonomy in exercising judgment, often in matters of great importance or sensitivity. Absolute discretion allows the holder to act independently, without being bound by rules, regulations, or guidelines, and to maintain confidentiality and privacy in their decision-making process. It is typically granted to individuals in positions of high trust, such as judges, executives, or government officials, and is expected to be exercised responsibly and ethically.
Absolute discretion refers to the complete and unrestricted authority given to a person or entity to make decisions or take actions without any limitations or guidelines. In legal terms, it means that the decision-maker has the power to exercise their judgement and make choices based on their own personal preferences or beliefs without being bound by any external factors or legal requirements.
Absolute discretion is often granted in contractual agreements or legal documents, where one party gives the other party the freedom to act as they see fit without any obligation to provide reasons or justifications for their decisions. This can be seen in situations where a trustee is given absolute discretion to distribute assets from a trust or when a company’s board of directors has absolute discretion to make business decisions.
However, it is important to note that absolute discretion does not mean that the decision-maker can act arbitrarily or unfairly. They still have a duty to exercise their discretion in good faith and in accordance with any applicable laws or regulations. Courts may intervene if it is found that the exercise of absolute discretion was done in bad faith, was irrational, or breached any legal obligations.
In summary, absolute discretion grants complete freedom and authority to a decision-maker, allowing them to make choices without any limitations or guidelines. However, this power must be exercised in good faith and within the boundaries of the law.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 11th April 2024.
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