What type of authority is explicitly given to an agent by the principal, either orally or in writing?

Express authority is the type of authority that is explicitly granted to an agent by the principal, either through oral or written communication. This authority sets clear boundaries and specific powers that the agent possesses while representing the principal. For instance, if a principal gives a written contract stating that an agent can negotiate and finalize insurance policies on their behalf, that is considered express authority. This form of authority is fundamental to establishing a transparent and accountable relationship between the principal and the agent, ensuring that the agent acts within the defined scope of their powers as agreed upon.

In contrast, the other types of authority are not specifically granted in the same manner. Implied authority, for example, arises from the necessity of the agent to perform the duties associated with the express authority, while apparent authority relates to third parties’ perceptions of the agent’s authority, regardless of the actual agreement between the principal and agent. Reasonable authority is not a recognized term in the context of agency relationships and therefore does not apply here. Understanding express authority is crucial for both agents and principals to ensure their actions and expectations align within the legal framework of their relationship.