Which type of authority is explicitly defined in an agency agreement?

Express authority is the correct choice because it refers to the specific powers and responsibilities that are explicitly outlined in an agency agreement. This type of authority is established through direct communication and clearly stated terms, which inform the agent exactly what actions they are allowed to take on behalf of the principal. In agency relationships, it is critical to define express authority to ensure that both parties understand the extent of the agent's power and to avoid any ambiguity regarding the agent’s role.

The clarity of express authority helps prevent disputes about what the agent can and cannot do, providing a solid foundation for the agency relationship. Because it is written or verbally communicated in detail, express authority allows all parties involved to have a clear understanding and expectations of the agency's actions and limits.