Which type of agent authority is explicitly defined in the agent's written contract?

The correct answer is express authority, as this type of authority is specifically outlined in the agent's written contract. Express authority refers to the explicit powers that the principal grants to the agent, detailing what actions the agent is allowed to undertake on behalf of the principal.

In practical terms, express authority provides clear guidelines regarding the transactions and responsibilities an agent can perform. This can include making certain types of decisions, entering into contracts, and other actions directly stated in the agreement.

Understanding this distinction is important for both agents and principals, as express authority delineates the bounds of the relationship and helps avoid potential misunderstandings or legal issues that can arise from ambiguity in authority. Clarity in express authority helps to ensure that agents act within their limits, thereby protecting both the agent and the principal in the business relationship.