What is the authority called that a principal grants to an agent through a written contract?

The authority that a principal grants to an agent through a written contract is known as express authority. This term specifically refers to the clear and direct powers that are articulated in the agreement between the principal and the agent. When an agent has express authority, they are explicitly permitted to perform certain acts or make decisions on behalf of the principal as detailed in the written contract.

This type of authority is often contrasted with implied authority, which is not expressly stated in the contract but is necessary to carry out the duties assigned to the agent based on the nature of the role. Knowing the difference between express authority and other forms of authority clarifies the boundaries and extent of the agent's powers, ensuring all parties are aware of what actions the agent is authorized to take on the principal's behalf. Express authority is fundamental in ensuring that the principal's intentions are executed accurately and legally by the agent.