Which type of authority is defined through explicit language?

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The type of authority defined through explicit language is referred to as Express Actual Authority. This form of authority occurs when a principal clearly, directly, and specifically grants authority to an agent to act on their behalf, often documented in writing or through verbal communication.

Express Actual Authority sets up a clear and unambiguous relationship between the principal and the agent, ensuring that the agent knows exactly what actions they are authorized to take. This can include specifics about the scope of the authority and the limits of that authority, making it a straightforward and reliable means of defining the relationship and responsibilities of the parties involved.

In contrast, other options would involve different types of relationships and circumstances. Implied Actual Authority arises from the surrounding circumstances and the role of the agent, not from a clear, explicit statement. Apparent Authority relates to the perception of third parties regarding an agent's ability to act, based on the principal's behavior, which may not necessarily be explicitly stated. Limited Authority refers to restrictions placed on the agent's ability to act, which may be expressed or implied but does not define authority through explicit language.

Therefore, the distinction of Express Actual Authority lies in its clarity and specificity, making it the most reliable and straightforward definition of authority based on explicit language.

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