What type of authority does Janice have by signing her agency contract?

When Janice signs her agency contract, she is granted express authority. Express authority is clearly defined and documented in the agency agreement, such as the powers and responsibilities outlined in the contract that Janice signs. This means that she has the specific permission to act on behalf of the principal (in this case, the insurance agency) as stipulated in the contract.

This type of authority is important in agency relationships because it provides clarity on the scope of what Janice can do, such as entering contracts, making claims, or performing other duties associated with the role of an insurance agent. Since express authority is directly granted through written or verbal communication, it establishes a clear legal footing for the actions she takes in her capacity as an agent.

The other types of authority have different characteristics. Implied authority refers to the authority that is not explicitly stated but is assumed to exist based on the role Janice occupies within the agency. Apparent authority involves the perception of authority by third parties, based on how Janice is perceived to act in her role. Presumptive authority, while similar to apparent authority, is not commonly classified in formal agency law as a distinct type of authority. Understanding these distinctions helps clarify the boundaries and powers associated with the agency relationship.