What is the difference between express and implied authority?

The distinction between express and implied authority is fundamental in the context of agency law. Express authority refers to the authority that is explicitly granted to an agent by the principal, which can be communicated through words, whether written or verbal. This type of authority sets clear boundaries regarding what the agent is permitted to do on behalf of the principal.

On the other hand, implied authority is not explicitly stated but is inferred from the actions, conduct, or circumstances surrounding the delegation of authority. This means that even when an agent does not have crystal-clear instructions for every action, they still may have the discretion to carry out necessary tasks that support the express authority.

This distinction is critical because it affects how agents are perceived in their roles and the extent to which they can act on behalf of their principals. Implied authority often allows agents to take actions that are reasonable or customary within the scope of the express authority they have been given. For example, if a principal gives an agent the express authority to sell a car, the agent might have implied authority to negotiate the sale price and finalize documentation necessary to complete the sale.

The other responses do not accurately reflect these legal principles. While some misstate either express or implied authority or attempt to limit them incorrectly, option B accurately captures