Which type of authority is explicitly written in a contract?

Study for the Foundever AD Banker Exam with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

The correct answer is express authority, which refers to the power that is explicitly granted to an agent or representative through a written contract or agreement. This type of authority is clearly defined, outlining the specific duties and permissions assigned to the agent. Because express authority is documented in writing, it provides legal protection and clarity regarding the roles and responsibilities within the contractual relationship.

In contrast, implied authority arises from the general conduct and circumstances of the relationship, where the agent is assumed to have certain powers based on the nature of their responsibilities, although not specifically stated in the contract. Apparent authority involves situations where a third party reasonably believes an agent has authority based on the principal's representations, even if that authority has not been formally granted. Delegated authority relates to the transfer of power from one entity to another and is not specifically about the written terms of a contract.

Thus, express authority is the focus here because it is the only type of authority that is documented within a contractual framework, making it distinct from the other types mentioned.

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