Authority given to an agent may be categorized into which two types?

The categorization of authority given to an agent into expressed and implied types is foundational in understanding agency relationships. Expressed authority refers to the specific powers that are granted to an agent either verbally or in written form by the principal. This authority is clear and unambiguous, often outlined in contracts or agreements, detailing the actions the agent is permitted to undertake on behalf of the principal.

On the other hand, implied authority goes beyond what is explicitly stated. It encompasses the authority that is not formally outlined but is necessary for the agent to perform their duties effectively. This often includes powers that are customary or necessary for the execution of the agent's job, even if not explicitly stated by the principal. For example, if an agent is hired to run a business, they might have implied authority to make day-to-day decisions that facilitate the operation, even if not specifically outlined in their contract.

This distinction is crucial for both principals and agents as it clarifies the scope of the agent's responsibilities and the limits of their authority in different situations, ensuring that actions taken are valid and binding. Understanding this framework is essential for anyone involved in auctioneering or related fields, where agents often act on behalf of clients.