What type of agent has explicitly given authority in a written or oral agreement?

Study for the ICAEW ACA Certificate Level - Law Test. Dive into multiple choice questions and detailed explanations to prepare effectively. Get ready for your exam!

An agent with explicitly given authority in a written or oral agreement is defined as an actual express agent. This type of authority is clearly communicated and detailed, allowing the agent to act on behalf of the principal within the scope of that authority. Actual express authority can be granted through various forms of communication, whether in writing (such as a formal contract) or orally (such as a conversation where the principal explicitly states what the agent can do).

This clarity in communication is crucial, as it establishes the boundaries and powers of the agent in relation to third parties. The principal is legally bound by the acts of the agent that fall within the realm of this express authority. As a result, anyone dealing with the agent can rely on their authority to act, knowing it is backed by the principal’s explicit instructions.

While other types of authority, such as actual implied, ostensible/apparent, and universal, exist, they operate under different premises and conditions. Actual implied authority arises when the agent has authority that is not explicitly stated but is necessary to carry out the duties assigned. Ostensible or apparent authority pertains to a situation where a third party reasonably believes the agent has authority based on the principal’s representations, even if no actual authority was granted. Universal agents have broad

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