What is an agency agreement set up by express appointment also known as?

An agency agreement set up by express appointment is known as consent. In the context of agency law, consent refers to the mutual agreement between the principal and the agent whereby the agent is authorized to act on behalf of the principal. This formal arrangement is established through an express appointment, where the terms of the agency relationship are clearly articulated and agreed upon by both parties. It differentiates itself from other forms of authority, such as apparent authority, necessity, or ratification, which involve implied or indirect means of establishing agency.

Understanding consent is essential because it underpins the foundation of the agent's authority to perform actions that bind the principal legally. In an express appointment, the scope of the agent's powers and the specific responsibilities are explicitly laid out, thereby providing clarity and reducing the risk of disputes arising from misunderstandings about the agent's authority. This clarity is critical for the effective functioning of agency relationships in various business contexts.