Louisiana Bail Bonds Practice Exam

What does express authority refer to in agency contracts?

1. Authority that is assumed

2. Authority given by conduct

3. Authority that is explicitly written

4. Authority inferred by actions

The correct answer is: Authority that is explicitly written

Express authority in agency contracts refers to the authority that is explicitly granted to an agent by the principal, often through a written agreement. This means that the terms of the authority are clearly stated, outlining specific powers or responsibilities that the agent is authorized to undertake on behalf of the principal. When express authority is established, the agent has the legal right to perform actions that are expressly defined by the principal, making it clear what is expected and allowed within the scope of their relationship. This clarity is important for both parties to ensure tasks are carried out as intended and that the principal is bound by the actions taken by the agent within the realm of that explicitly defined authority. In contrast, the other types of authority, which involve assumptions or actions inferred rather than specifically stated, do not provide the same level of clarity or legal basis for the agent's actions.