Which of the following best defines express authority versus implied authority in agency relationships?

• A. Express authority is explicit permission; implied arises from the agent's role and is necessary to fulfill express authority; example: signing routine notices.
• B. Express authority is implicit; implied arises from principal's relationship.
• C. Express authority is only in writing; implied authority is always oral.
• D. Express authority is not legally binding; implied is.

Answer: (A)

Express authority is explicit permission given by the principal to act for them, while implied authority comes from the agent’s role or duties and is necessary to carry out the express grant. The best answer captures this: express authority is explicit, and implied authority arises to fulfill that express authority, including actions reasonably necessary to accomplish the assigned tasks. Signing routine notices is a typical example—it's something the agent would need to do to carry out approved communications, even though the act of signing isn’t spelled out in every instruction.

Remember that express authority need not be written; it can be oral or written. Implied authority isn’t about the principal’s relationship alone in isolation; it flows from the agent’s position and the reasonable, customary steps required to fulfill the express power. The other statements misstate the concepts: express authority can be oral or written, implied authority is not merely a separate relationship, and both forms can bind the principal within the scope of the agency.