What is the difference between express and implied authority?

The distinction between express and implied authority is crucial in understanding the dynamics of agency relationships. Express authority is explicitly granted to an agent, usually in clear terms such as written contracts or verbal agreements, specifying what actions the agent is permitted to take on behalf of the principal. This authority arises from direct communication between the principal and the agent, setting clear expectations.

Implied authority, on the other hand, is not directly stated but is understood to be necessary for the agent to fulfill their duties. It includes powers that are reasonably required to carry out the express authority granted. For instance, if an agent is given the express authority to manage a property, their implied authority would allow them to perform necessary tasks like hiring maintenance workers or collecting rent, even if those specific actions were not explicitly detailed.

This distinction helps clarify the nature and breadth of an agent's role in relation to their principal, highlighting how express authority provides specific limitations and permissions, while implied authority encompasses broader, necessary actions to achieve the principle's goals.