What type of authority is specifically given to an agent through written contracts and agreements?

Study for the New Jersey Title Insurance Producer Exam. Study with flashcards and multiple-choice questions, each question has hints and explanations. Get ready for your exam!

The type of authority that is specifically given to an agent through written contracts and agreements is known as express authority. This authority is explicitly defined within the terms of a contract or an agreement between the principal and the agent. Express authority grants the agent the power to act on behalf of the principal in specific situations outlined in the documentation. It is characterized by clear, definitive powers that the agent can exercise, ensuring that both parties have a mutual understanding of the agent's responsibilities and limitations.

In practical terms, this means that any actions taken by the agent within the scope of this express authority are legally binding on the principal. For example, if a title insurance company provides a written agreement that allows an agent to negotiate contracts, that agent can perform those tasks confidently, knowing they have the authority to do so as specified.

The other types of authority mentioned are not based on explicit written agreements. Implied authority refers to powers that are not expressly stated but are necessary to carry out the duties specified in the written contract. Apparent authority relates to situations where a third party is led to believe that the agent has authority, even if that has not been formally granted by the principal. General authority broadly covers the agent's general responsibilities, but not in the specific manner that express

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