Authority In Contract Law
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FAQ
Express authority is the authority that an agent has in writing in the contract with the insurer that the agent represents. Express authority spells out in contract form the activities that the agent has the power to perform on behalf of the insurer.
Contract authority refers to the ability given to an individual or agency to act on another's behalf in order to carry out a specific task.
For example, suppose a realty company hires a real estate agent. It is implied that the real estate agent has the authority to assist third parties to purchase and sell homes because that is the custom for real estate agents.
For example, certain individuals within an organization may have general authority to sign routine documents such as purchase orders or employee contracts up to a certain monetary value.
Express authority: An agent has express authority to take any actions requested by the principle as well as authority to take any actions inherently necessary to accomplish those requests. Implied authority: An agent has implied authority to take any action the principal's conduct indicates the agent should do.
