If an agent follows the rules and terms of his agent contract, he is exercising his:

When an agent adheres to the rules and terms outlined in his agent contract, he is exercising his express authority. This type of authority is explicitly granted through the agent's contract and encompasses the powers and responsibilities that the principal has specifically delineated. The contract serves as a formal agreement that defines what the agent is permitted to do on behalf of the principal, creating a clear framework within which the agent operates.

Express authority is essential in establishing a legal foundation for the agent's actions, ensuring that they align with the principal's intentions and directives. Because the agent is following these clearly stated terms, any actions taken are within the scope of what has been agreed upon, thereby protecting both the agent and the principal in their business dealings.

Other types of authority, such as apparent authority, implied authority, or contractual authority, introduce different nuances. Apparent authority refers to the perception that the agent has the power to act on the principal's behalf, based on the principal's actions or statements, potentially leading to misunderstanding or misrepresentation. Implied authority relates to powers not explicitly stated in the contract but necessary to carry out the agent’s responsibilities. While contractual authority is a more general term that could encompass express authority, it does not specifically refer to the clear, direct