Question 64

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

Express authority occurs when a principal explicitly grants authority to an agent in a written document. This formalization clearly delineates the powers and responsibilities assigned to the agent.

A) Express

Express authority is the correct answer because it refers to the clear and direct granting of authority from the principal to the agent, often outlined in a written agreement. This type of authority is explicitly stated, ensuring that both parties understand the scope of the agent's powers.

B) Implied

Implied authority is incorrect in this context as it refers to authority that is not explicitly stated but is assumed to exist due to the actions or circumstances surrounding the relationship between the principal and the agent. It does not involve a written grant, which is a key aspect of express authority.

C) Apparent

Apparent authority is also not applicable here, as it arises when a third party reasonably believes that an agent has authority based on the principal's conduct, even if such authority was not officially granted. It does not involve a written document from the principal to establish the agent's powers.

D) Direct

Direct authority does not accurately describe the type of authority provided in writing. The term is not commonly used in agency law to define the nature of authority granted; thus, it does not fit the context of the question regarding written authority.

Conclusion

Express authority is definitively the correct choice, as it directly relates to the formalized, written permissions granted by the principal to the agent. The other options fail because they either describe different forms of authority that do not involve a written agreement or are not recognized terms in the context of agency law.