Which of the following is NOT a type of contractual authority?

The concept of contractual authority refers to the various ways in which an agent can have the power to bind a principal in a contract. Actual authority, apparent authority, and ratification are all recognized forms of such authority, while operational authority is not a recognized category in this context.

Actual authority arises when a principal explicitly grants an agent the power to act on their behalf, either through a written or spoken agreement. Apparent authority comes into play when a third party reasonably believes that an agent has authority to act based on the principal's representations, even if the agent does not have actual authority. Ratification occurs when a principal approves a previously unauthorized act of an agent, thereby validating the agent's actions retroactively.

Operational authority is not a recognized term in agency law, thus making it the correct response to the question. In summary, while actual, apparent, and ratification authority each play distinct roles in establishing how an agent can legally operate on behalf of a principal, operational authority does not exist within this framework, highlighting that it is the outlier in this context.