Which of the following is NOT a type of authority in agency law?

Prepare for the California Independent Adjuster Exam. Enhance your skills with multiple choice questions, each with detailed hints and explanations. Ensure your success by studying effectively!

In agency law, the types of authority are categorized to define the various ways an agent may act on behalf of a principal. The three recognized types are express authority, implied authority, and apparent authority.

Express authority is explicitly granted to the agent, often through a written or verbal agreement. This is a clear and definitive way for a principal to convey the specific powers granted to the agent.

Implied authority allows an agent to perform actions that are not explicitly stated but are necessary to fulfill the responsibilities for which they were appointed. This type of authority is inferred from the nature of the relationship or the specific duties assigned, allowing an agent to make decisions that align with their role.

Apparent authority occurs when a principal's actions lead a third party to believe that the agent has the authority to act on behalf of the principal, even if that authority hasn’t been expressly granted. This can arise from the principal’s conduct or representations which inform a third party that the agent is authorized.

However, inherent authority is not widely recognized as a distinct type of authority in agency law; it is often conflated with other forms of authority. Consequently, identifying it as a stand-alone category is inaccurate and reflects a misunderstanding of the established types of authority that agents hold. This

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