What defines express authority in an agency context?

Express authority in an agency context refers to the specific powers that an agent is explicitly granted through a written or verbal agreement made by the principal. When express authority is established, it clearly outlines the extent of the agent's role and duties, ensuring that both the principal and the agent understand the scope of the agent's powers. This clarity helps prevent misunderstandings and ensures that the agent can perform tasks on behalf of the principal within the agreed-upon limitations.

This type of authority is contrasted with implied authority, which arises from the actions or conduct of the agent, rather than being explicitly stated. Legal statutes can define certain powers but may not necessarily align with the specific agreement between the principal and the agent. General business practices provide context and may inform an agent's actions, but they do not define express authority directly as laid out in a formal agreement. The explicit nature of express authority is what makes it a foundational concept in understanding agency relationships.