What is express authority in agency law?

Prepare for the Metro Brokers Exam with flashcards and multiple choice questions. Each question is accompanied by hints and explanations. Get ready for your certification!

Express authority in agency law refers specifically to the authority that is explicitly granted to an agent by the principal through a clear agreement or contract. This authority can be detailed in written documents or communicated verbally, but the key aspect is that it is clearly articulated and agreed upon by both parties involved.

The principal empowers the agent to perform certain acts or make decisions on their behalf, and these powers are defined without ambiguity. For instance, if a property owner explicitly states that their real estate agent can sign documents relevant to the sale of their property, that agent has express authority to do so.

The other options touch on concepts related to agency authority but differ from express authority. For example, the assumption of authority through action involves implied authority, which arises from the circumstances and conduct of the parties rather than a specific agreement. Mutual consent typically refers to the overall agreement in any agency relationship but does not define the explicit powers granted to the agent. Likewise, authority based on the principal's reputation can influence the agent's perceived power but does not equate to express authority, which relies on defined and communicated powers.

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