Apparent authority arises when a principal represents that an agent is authorized to act on the principal’s behalf, and a third party reasonably relies on that representation.

Implied authority exists when an agent reasonably believes certain actions are necessary to carry out their duties, when the agent has previously engaged in similar conduct, or when such actions are customary for someone acting on behalf of the principal.

Express authority arises when a principal explicitly grants an agent the power to act on the principal’s behalf.

Actual authority exists when the principal reasonably communicates to the agent that the agent has authority to act on the principal's behalf.

An agency relationship exists when: (1) the principal assents to the agent acting for the principal; (2) the agent acts for the benefit of the principal; and (3) the principal has the right to control the agent’s conduct (“ABC”).

A principal is a person that authorizes an agent to act on behalf of a principal.

An agent is a person that act’s on behalf of a principal.