Which of the following statements about the law of agency is correct?

The correct statement regarding the law of agency is that the authority of an agent can be expressed, implied, or apparent. This reflects the various ways through which an agent may be granted the ability to act on behalf of the principal.

Express authority is explicitly granted to the agent through written or spoken words. This means the principal clearly defines the scope and limits of the agent’s power. Implied authority derives from the nature of the agent's position or the circumstances surrounding the arrangement, allowing the agent to perform tasks that are reasonably necessary to execute their duties effectively. Apparent authority occurs when a third party believes the agent has authority based on the principal's representations, even if the agent does not have actual authority from the principal.

Understanding these types of authority is crucial in the context of agency law, as it outlines how agents can operate within their roles and the legal implications of their actions. The various forms of authority create a framework for interactions between the principal, the agent, and third parties, ensuring clarity in the agency relationship.