How does express authority differ from implied authority in agency law?

The distinction between express authority and implied authority is fundamental in agency law. Express authority refers to the specific permissions that a principal gives to an agent, which can be communicated through verbal instructions or written documents. This authority is clearly defined and explicitly stated, thus leaving no ambiguity about what the agent is authorized to do.

On the other hand, implied authority arises from the actions of the parties and the context in which the agent operates. It is inferred from the principal's behavior, the agent's role, and the circumstances surrounding the agency relationship. For instance, if a principal allows an agent to act in a certain capacity, it may be understood that the agent has the authority to perform tasks that are typical or necessary for that role, even if those tasks are not explicitly outlined.

This differentiation underscores the importance of clarity in agency relationships. While express authority provides a clear guideline for what the agent can do, implied authority allows for flexibility based on the situation.