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The use of agents is a common practice in many types of business. Agents are individuals who are legally empowered to act on behalf of a principal, or the company they represent. Agents are appointed to represent the principal in negotiations or transactions with other parties. To ensure the agent’s authority is legally recognized by the other parties, the principal must provide the agent with documentation that explicitly grants them authority. This document is referred to as an “express authority” document.

Types of Express Authority Documents

The exact documents required to grant express authority to an agent vary depending on whether the agent is representing a company or an individual. For agents representing a company, the approval of a board of directors or other governing body is necessary to grant express authority. This is typically done in the form of a resolution or a power of attorney document. For agents that are representing an individual, the principal must typically create a power of attorney document to grant the agent express authority.

Benefits of Express Authority Documents

Granting an agent express authority is important for a number of reasons. It ensures that the third parties involved in the negotiations or transactions understand that the agent has the legal authority to act on behalf of the principal. This helps to eliminate any misunderstandings or potential disputes. Additionally, having an express authority document in place makes it easier for the principal to assert their legal rights in the event of a dispute.

Conclusion

When an agent is appointed to represent a principal, express authority documents must be created to ensure the agent’s authority is legally recognized. The exact documents required to grant express authority to an agent vary depending on whether the agent is representing a company or an individual. Having an express authority document in place is beneficial as it eliminates potential misunderstandings and makes it easier for the principal to assert their legal rights in the event of a dispute.