Which of the following best describes the function of expressed authority?

Study for the Louisiana Title Insurance Exam. Engage with flashcards and multiple choice questions. Hints and explanations guide your way. Prepare confidently for your certification!

The function of expressed authority is best described as authority granted through a written contract. This type of authority refers to the clear and direct powers assigned to an agent or representative as laid out in a formal agreement. An expressed authority explicitly defines what an agent can and cannot do, which helps prevent misunderstandings or disputes between the parties involved.

In legal and business contexts, having this authority documented in writing ensures that the agent's powers to act on behalf of the principal (the person giving the authority) are clear and enforceable. This clarity supports the law and confirms the legitimacy of the agent's actions within the set boundaries of the contract.

Options that suggest authority is assumed without explicit permission, restricted to verbal agreements, or requires no documentation fall short of the definition of expressed authority, as they do not provide the clear, written parameters that characterize it. Expressed authority emphasizes the importance of formalizing agreements to protect all parties' interests.

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