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RECOGNITION
, contracts. An acknowledgment that something which has been done by one man in the name of another, was done by authority of the latter. 2. A recognition by the principal of the agency of another in the particular instance, or in similar instances, is evidence of the authority of the agent, so that the recognition may be either express or implied. As an instance of an implied recognition may be mentioned the case of one who subscribes policies in the name of another and, upon a loss happening, the latter pays the amount. 1 Camp. R. 43, n. a; 1 Esp. Cas. 61; 4 Camp. R. 88.
Source: Bouviers Law Dictionary 1856 Edition
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