What are the three types of authority in the "Agency Relationship"?

In the context of the agency relationship, the three types of authority are express, implied, and apparent.

Express authority refers to the specific powers granted to an agent by the principal, usually in writing or verbally. This is a clear and direct communication of what the agent is allowed to do.

Implied authority is not explicitly stated but is assumed to be granted based on the agent’s position or responsibilities. For example, if an agent is given the power to manage certain tasks, they may also have the authority to take necessary actions to complete those tasks, even if those actions are not explicitly detailed.

Apparent authority occurs when the principal's actions lead a third party to believe that the agent has the authority to act on behalf of the principal, even if the agent does not have actual authority. This is based on the perception of the third party and the principal's representations.

Understanding these distinctions is crucial in the realm of agency relationships as they influence the scope and effectiveness of the agent's actions regarding liability and the ability to enter contracts on behalf of the principal.