What is considered "actual (express) authority" in an agency context?

"Actual (express) authority" refers specifically to the powers that an agent has been explicitly granted by the principal, which can be communicated verbally or in written form. This type of authority allows the agent to act and make decisions on behalf of the principal within the boundaries defined by the principal's explicit instructions.

In the context of agency, this explicit grant of authority is crucial for ensuring clarity about what the agent is allowed to do and helps protect both the principal and the agent during transactions. For instance, if an insurance company provides an agent with a written authority to bind coverage, that document clearly outlines the extent of what the agent can do, and that authority is recognized and enforceable.

Other options may refer to different kinds of authority that are less explicit. The implied authority, indicated in another choice, is based on the agent's role and presumed knowledge of the customary practices within that role, while general authority refers to understood powers within the industry norms. Implicit authority, derived from agency culture, does not provide the clear guidelines that express authority does. Therefore, the definition and function of actual (express) authority are particularly significant in establishing clear agency relationships and expectations.