Which form of authority is based on the perceptions of the client rather than explicit authorization?

Apparent authority is based on the perceptions of the client rather than explicit authorization. This concept refers to a situation where a third party believes that an agent has the authority to act on behalf of a principal, even if that authority has not been formally granted. This belief creates a situation where the principal can be held liable for the actions of the agent because the third party reasonably perceived the agent as having authority based on the principal's conduct or representations.

For instance, if a client has always interacted with an agent who presents themselves as having the authority to make certain decisions, the client might assume that the agent still possesses this authority in their dealings, even if the agent does not have express permission. This perception can lead to binding agreements and disputes where the principal may be held accountable for the actions taken under the guise of apparent authority.

In contrast, express authority refers to clearly stated authority given to an agent, typically documented in writing. Implied authority, on the other hand, refers to authority that is not explicitly stated but is necessary to carry out the duties assigned to the agent. There is no formal definition or recognized role for informed authority in the context of agency law.