How is express authority defined in the context of agency law?

Prepare for the Champions Law of Agency Test. Use flashcards and multiple choice questions with hints and explanations to boost readiness. Get exam-ready!

Express authority in agency law refers to the authority that is explicitly granted to an agent by a principal, typically through a clear and formal communication that can often be in writing. This type of authority allows the agent to act on behalf of the principal in specified ways and for specific purposes as clearly delineated in the agreement between them. The explicit nature of this authority ensures that the agent knows exactly what powers have been granted, minimizing ambiguity in the agency's operations.

The formalization aspect—often documented in a contract or a written agreement—provides a reliable framework for the relationship, protecting both the principal and the agent. This contrasts with less formal arrangements or verbal agreements that may not convey the same level of clarity or enforceability. Hence, express authority establishes a strong basis for the agent's actions and duties, which is essential in legal contexts where the conduct of agents can directly impact the principal's interests.

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