What is the difference between express authority and implied authority in agency, and provide an example?

• A. Express authority arises from the agent's personal discretion; implied authority is written in the contract.
• B. Express authority is explicit permission; implied authority arises from the agent's role and necessary actions to fulfill the express authority; example: agent signs standard notices implied by their role.
• C. Express authority is only theoretical; implied authority is always legally binding.
• D. Express authority and implied authority are the same.

Answer: (B)

Express authority is explicit permission from the principal, spelled out in the agency relationship—the agent is authorized to act in specific ways because the principal directly told them to. Implied authority, on the other hand, comes from the agent’s role and what is reasonably necessary to carry out that express permission. If the duties include handling routine tasks and notices as part of the role, the agent can perform those acts even if they aren’t written in the contract, because they’re customary or necessary to accomplish the express authority.

The example fits this idea: a agent who, by virtue of their role, signs standard notices that are ordinarily required to perform their duties. Those notices aren’t necessarily individually written into the contract, but signing them is a typical, reasonable step to fulfill the authorized tasks.

Other options misstate the relationship. Express authority isn’t just the agent’s personal discretion, and express and implied authority are not the same; implied authority is not something separate from the express grant but a natural extension needed to carry it out.