What is actual authority?

Actual authority refers to the power that a principal gives an agent to act on their behalf in specific situations. This can be divided into two primary forms: express authority and implied authority.

Express authority is clearly defined and articulated, typically in written or verbal form, where the principal explicitly grants permission for the agent to perform certain actions. On the other hand, implied authority arises from the circumstances and the principal's conduct, allowing the agent to take actions that are reasonably necessary to fulfill the purposes for which they were appointed.

In the context of the question, actual authority includes both express and implied authority, as it encompasses the consent provided by the principal either through direct communication or implied through their conduct or circumstances surrounding the agency relationship. Thus, the description of authority that is expressly granted by the principal or inferred from conduct accurately captures the concept of actual authority in agency law.