The powers directly given to an agent in an agency contract are called what?

• A. Implied
• B. Express
• C. Apparent
• D. Assumed

Answer: (B)

Express authority is the powers directly given to an agent in an agency contract. This is defined by explicit terms in the agreement—written or spoken—that spell out what the agent is allowed to do on the principal’s behalf. Actions within that defined scope bind the principal, while anything outside requires new authorization. This differs from implied authority, which arises from the agent’s role and what is necessary to perform the express duties, even if not written. Apparent authority occurs when the principal’s actions lead a third party to reasonably believe the agent is authorized, based on the principal’s conduct rather than the agent’s actual power. The powers directly granted in the contract are the express authority.