What type of authority is specifically granted in writing to an agent in the contract of agency?

The correct choice identifies express authority as that type of authority explicitly granted in writing to an agent in the contract of agency. Express authority is defined clearly within the agency agreement, outlining the specific actions and decisions the agent is permitted to undertake on behalf of the principal. This type of authority is essential for establishing the scope of the agent's powers and provides both the agent and the principal with a clear understanding of their rights and duties.

Having express authority ensures that the agent operates within the limits set by the principal, thus protecting both parties. For instance, if a principal grants express authority to an agent to sign contracts, any contracts signed by that agent under this express authority are binding on the principal.

Other categories of authority, such as implied authority and apparent authority, involve different dynamics. Implied authority refers to powers that are not explicitly stated but are necessary to perform the duties assigned, while apparent authority arises when a third party perceives that the agent has authority based on the principal's representations. Encumbered authority is not a recognized term in this context, highlighting the importance of understanding the specific definitions and applications of agency authority.