Agent authority granted in a written contract is known as?

Agent authority granted in a written contract is known as?

• A. Implied authority
• B. Express authority
• C. Restricted authority
• D. Apparent authority

Answer: (B)

The correct choice is express authority because it refers to the specific authority granted to an agent through a written contract or agreement. When an agent is appointed through a formal document, the terms and conditions of that appointment are explicitly stated, leaving no ambiguity regarding the powers and responsibilities of the agent. This type of authority is derived directly from the principal’s instructions, which can be detailed in a contract or other written documentation. For example, in a real estate transaction, if an agency agreement clearly outlines that the agent has the authority to negotiate sales on behalf of the principal, this is express authority because it has been clearly laid out in writing. This contrasts with implied authority, which is not documented explicitly but arises from the agent's role or the necessity of performing their duties effectively under the express authority. Apparent authority relates to situations where a third party perceives that an agent has authority, even if it is not expressly granted, while restricted authority and implied authority do not specifically denote a contract-based delegation of power.

The correct choice is express authority because it refers to the specific authority granted to an agent through a written contract or agreement. When an agent is appointed through a formal document, the terms and conditions of that appointment are explicitly stated, leaving no ambiguity regarding the powers and responsibilities of the agent. This type of authority is derived directly from the principal’s instructions, which can be detailed in a contract or other written documentation.

For example, in a real estate transaction, if an agency agreement clearly outlines that the agent has the authority to negotiate sales on behalf of the principal, this is express authority because it has been clearly laid out in writing. This contrasts with implied authority, which is not documented explicitly but arises from the agent's role or the necessity of performing their duties effectively under the express authority. Apparent authority relates to situations where a third party perceives that an agent has authority, even if it is not expressly granted, while restricted authority and implied authority do not specifically denote a contract-based delegation of power.