What is the agency term for the explicit powers granted to an agent by the principal?

The correct term for the explicit powers granted to an agent by the principal is express authority. This authority is clearly defined and communicated, often in writing or verbally, and establishes the specific actions that the agent is authorized to perform on behalf of the principal. Understanding express authority is crucial in the law of agency, as it signifies the level of trust the principal has in the agent to act within defined parameters.

Express authority can include instructions for specific transactions, powers to manage certain areas of the principal's business, or authority to make decisions that directly impact the principal’s interests. It is differentiated from implied authority, which allows the agent to take actions that are not explicitly stated but are necessary to fulfill the duties given, and actual authority, which encapsulates both express and implied authority. Limited authority refers to restrictions placed on the agent's power, making express authority a more straightforward and robust concept in the agency relationship.