What term is used when the principal grants authority to an agent in writing?

When a principal grants authority to an agent in writing, it is referred to as express authority. This form of authority is explicitly stated in a written document, which outlines the specific powers and responsibilities granted to the agent. Since the authority is clearly defined in this document, it provides a strong legal basis for the actions taken by the agent on behalf of the principal. This clarity helps to ensure that both the principal and the agent have a mutual understanding of the scope of the agent's powers, thereby minimizing potential disputes.

In contrast, other forms of authority such as implied authority do not involve explicit written documentation, as they arise from the circumstances or the conduct of the principal and agent. General authority typically allows an agent to act in a broad range of activities on behalf of the principal, whereas limited authority restricts the agent's actions to specific tasks or situations. However, when authority is expressly provided in writing, it establishes a concrete and unequivocal foundation for agency relationships.