What defines express agency?

Express agency is characterized by a clear and formal agreement between the parties involved, where the agent is explicitly authorized to act on behalf of the principal. This type of agency can be established through a written contract or a verbal agreement that clearly outlines the expectations, responsibilities, and terms of the agency. The emphasis is on the explicit consent given by the principal to the agent, which delineates their powers and duties in relation to a specific task or transaction.

In contrast to other types of agency, such as implied agency—which relies on the conduct of the parties to infer an agency relationship—express agency is about clearly defined terms that eliminate ambiguity. This formal aspect means that both the principal and the agent understand their roles and obligations, thereby reducing the potential for disputes or misunderstandings. Therefore, recognizing express agency hinges on identifying a definitive agreement among the parties, which sets it apart from other methods of establishing agency relationships.