What is the term for when a principal gives an agent authority to act on their behalf?

The term used when a principal explicitly grants authority to an agent to act on their behalf is referred to as express authority. This type of authority is clearly defined and usually communicated through direct communication, such as written or verbal instructions. For example, if a principal hires an agent and provides them with a written contract outlining specific powers, that contractual provision is a demonstration of express authority.

Express authority can be crucial during legal matters, as it provides clear evidence of the scope of the agent's powers and the principal's intentions. The distinction from implied authority, which arises from the actions or situation rather than explicit communication, further underscores the significance of express authority in establishing a clear and unequivocal agency relationship. Similarly, inherent authority refers to the authority that a principal gives an agent by virtue of their role, regardless of explicit instructions, while agency authority is not a standard legal term used in this context.