Which authority is not considered a form of agency authority?

In the context of agency authority, the types of authority generally recognized include express authority, implied authority, and incidental authority. Each of these plays a significant role in establishing the relationship between the principal and the agent.

Express authority arises from specific statements made by the principal, outlining the exact powers granted to the agent. This is clear and explicitly articulated, often found in written contracts or verbal agreements.

Implied authority allows an agent to take actions that are reasonable or necessary to accomplish the goals set forth by the principal, even if those actions are not explicitly stated. This authority is derived from the agent’s role and the context in which they operate.

Incidental authority pertains to the powers that are not directly specified but are necessary to carry out the duties assigned to the agent. For instance, if an individual is authorized to make purchases on behalf of a business, they might have incidental authority to use company funds for related expenses.

On the other hand, exemplary authority is not recognized as a legitimate type of authority in the agency context. It does not conform to the established legal framework that defines how agents can act on behalf of their principals. Consequently, this makes exemplary authority the correct answer, as it does not represent a valid form of agency authority like the others do