An agent exercising authority per the terms of their contract is demonstrating which type of authority?

An agent demonstrating authority per the terms of their contract exemplifies express authority. This type of authority is explicitly granted to the agent through the specific wording of their agreement with the principal. Express authority is clear and directly communicated, often detailed within the written contract or agreement.

When an agent acts within the framework of the authority described in the contract, they are taking actions that the principal has explicitly authorized. This contrasts with implied authority, which is not directly stated but can be inferred based on the agent’s role or the circumstances surrounding the agreement. Apparent authority, on the other hand, arises from the perception of third parties regarding the agent's abilities based on the principal's representations. Contractual authority could be seen as a broader term, but it's not an established type in the context of agency relationships. Thus, express authority is the precise term that best fits the situation where an agent is acting according to the specific terms outlined in their contract.