A spectral method which provides unified quantum mechanical descriptio
ns of both physical and chemical binding phenomena is reported for con
structing the adiabatic electronic potential energy surfaces of aggreg
ates of atoms or other interacting fragments. The formal development,
based on use of a direct product of complete sets of atomic spectral e
igenstates and the pairwise-additive nature of the total Hamiltonian m
atrix in this basis, is seen to be exact when properly implemented and
to provide a separation theorem for N-body interaction energies in te
rms of response matrices which can be calculated once and for all for
atoms and other fragments of interest. Its perturbation theory expansi
on provides a generalization of familiar (Casimir-Polder) second-order
pairwise-additive and (Axilrod-Teller) third-order nonadditive intera
ction energies, expressions which are recovered explicitly in the long
-range-dipole expansion limit. A program of ab initio computational im
plementation of the formal. development is described on the basis of u
se of optimal (Stieltjes) representations of complete sets of discrete
and continuum atomic spectral states, which provide corresponding fin
ite-matrix representations of the Hamiltonian. The widely employed pai
rwise-additive approximation to nonbonded N-body interaction energies
is obtained from these implementations in appropriate limits. Addition
ally, the development clarifies and extends rigorously diatomics-in-mo
lecules approaches to potential-surface construction for bonding situa
tions, includes the effects of state mixing and charge distortion miss
ing from semiempirical and perturbation approximations commonly employ
ed in theoretical studies of collision broadening and trapped-radical
spectroscopy, and encompasses and demonstrates equivalences among thes
e apparently dissimilar approaches in appropriate limits. Large non-pa
irwise-additive contributions to the lowest-lying potential energy sur
faces are found in illustrative studies of the structure and spectra o
f physically bound Na-Ar-N cryogenic clusters.