Question 64

Express authority is given when the principal provides authority in writing.

When the principal grants authority to the agent in writing, it is referred to as express authority. This formal agreement clearly outlines the powers and responsibilities of the agent as defined by the principal.

A) Express

This option is correct because express authority specifically refers to the explicit powers granted to the agent by the principal through written communication. It establishes a clear and formal agreement, making it the definitive form of authority in this context.

B) Implied

Implied authority is incorrect in this case as it refers to powers that are not explicitly stated but are necessary to carry out the duties assigned to the agent. Since the question specifies that authority is given in writing, it contradicts the nature of implied authority, which does not rely on written or verbal statements.

C) Apparent

Apparent authority does not apply here, as it involves the authority an agent appears to have based on the principal's representations to third parties. The scenario described in the question emphasizes a written grant of authority, making apparent authority irrelevant.

D) Direct

Direct authority is not a recognized term in agency law and does not accurately describe the type of authority given through a written document. The specific terminology used in agency theory is express, implied, and apparent, making this option incorrect.

Conclusion

Express authority is definitively the correct answer because it directly corresponds to the situation where authority is granted in writing. The other options either misinterpret the nature of the authority or do not apply to the context provided, reinforcing that express authority is the appropriate classification for written agent authority.