What best describes express authority?

Express authority refers to the specific powers that are explicitly granted to an agent by a principal through clear and definite communication. This can occur through written or oral instructions, where the principal articulates the exact scope of authority the agent possesses. For example, if a business owner explicitly tells an employee that they have the authority to sign contracts up to a certain dollar amount, that constitutes express authority. This clear delineation of power creates a foundation of trust and understanding between the principal and the agent, allowing the agent to act on behalf of the principal in a manner that aligns with their intentions.

The other options describe different forms of authority or misconceptions about authority. Implied terms relate to actions and contexts that suggest authority without being explicitly stated, whereas public perception involves how authority might be viewed or interpreted by others without formal designation. Authority based on a previous agreement could imply some degree of prior consent but does not necessarily meet the clarity necessary for express authority. Only the definition of express authority emphasizes the importance of clarity and definitiveness in communication between the principal and the agent.