What does express actual authority typically involve?

Express actual authority is a fundamental concept in agency law, which refers to the power that a principal explicitly grants to an agent. This authority is established through clear communication and can be conveyed in two primary ways: through oral instructions or through written documentation.

When the principal specifically outlines what the agent is permitted to do and conveys this information directly, the agent can rely on that clarity to act on behalf of the principal. This means that any actions taken by the agent within the scope of this express authority are legally binding on the principal.

In contrast, other options describe scenarios that do not align with the clear and definitive nature of express actual authority. For example, granting authority without explicit terms refers to implied authority, while creating authority through silence does not establish any authority at all. Similarly, assuming authority based solely on the agent's actions pertains to actual authority that might be implied by conduct rather than clearly stated by the principal. Therefore, express actual authority distinctly involves clear and direct communication, making it a crucial aspect of agency relationships.