What type of authority is provided by a written contract between an agent and a principal?

The type of authority provided by a written contract between an agent and a principal is classified as express authority. This authority is explicitly granted to the agent through the terms and provisions of the contract, outlining specific duties, powers, and limitations that the agent has when representing the principal.

In a written contract, the principal clearly defines the scope of the agent's authority, which can include specific actions that the agent is allowed to undertake on behalf of the principal. This clarity ensures that both parties understand their rights and responsibilities, minimizing the risk of disputes and ensuring that the agent acts within the parameters set by the principal.

Understanding express authority is crucial for both agents and principals because it delineates the legal boundaries of their relationship and the actions that can be taken. Without express authority, agents may not be able to take specific actions that could benefit the principal, which can lead to inefficiencies or miscommunication in their dealings.