What are the types of authority that agents can have?

Agents have various forms of authority that determine how they can act on behalf of a principal. Actual authority refers to the specific powers that an agent has been granted by the principal, which can be either expressed directly through verbal or written instructions or implied through actions or circumstances. Implied authority is a subset where the agent can perform acts that are reasonably necessary to carry out their duties, even if not explicitly stated. Apparent authority exists when a third party can reasonably believe that the agent has the authority to act, based on the principal's representations, even if the agent does not have actual authority. This concept helps protect third parties who rely on the authority seemingly granted to an agent by a principal.

The correct answer encompasses these critical concepts of how agents can operate within the scope of their roles, highlighting the importance of understanding these distinctions in agency law.