What distinguishes express authority from implied authority in agency, and which illustrates implied authority?

• A. Express authority is explicit permission; implied authority arises from the agent's role and necessary actions to fulfill express authority; example: agent signs standard notices implied by their role.
• B. Express authority arises from the principal's silence; implied authority is explicit; example: agent signs standard notices implied by their role.
• C. Express authority is only about signing notices; implied authority never includes signing notices; example: agent signs notices.
• D. Express authority and implied authority are the same; example: agent signs standard notices.

Answer: (A)

The main idea tested here is how authority granted to an agent can come in two forms and how they relate to each other. Express authority is explicit permission given by the principal to the agent, either in writing or orally. Implied authority, however, isn’t written or spoken; it arises from the agent’s role, duties, and the actions that are reasonably necessary to carry out the express grant or that are customary in the business.

The example shown fits implied authority well: an agent who signs standard notices as part of their role is acting in a way that’s typically necessary to fulfill the duties the principal entrusted to them. Those signing actions aren’t necessarily spelled out for every notice, but they’re a reasonable extension of the agent’s authority to manage relevant tasks.

Why the other ideas don’t fit: authority stemming from silence is not how agency works—implied authority does not come from the principal’s silence but from the agent’s position and duties. Saying express authority is explicit while implied is the reverse or treating them as interchangeable misses the distinction that implied authority fills gaps to carry out the express grant. And limiting express authority to signing notices ignores the broader scope of express grants, while saying the two forms are the same ignores their different sources and roles.