Final answer:
The authority granted to an agent by a principal through an agreement is known as express or actual authority, which can include both explicitly stated powers and implied powers necessary to fulfill those duties. This form of authority is part of a broader understanding of authority as power that is accepted and legitimized by laws and regulations.
Step-by-step explanation:
The authority granted to an agent, which is defined in the agent's agreement that sets forth the specific powers and functions, is often referred to as express authority or actual authority. This type of authority is deliberately given to the agent by the principal. Express authority outlines the agent's responsibilities and the extent to which they can act on behalf of the principal. In many cases, this is formalized in a written contract or agreement. Moreover, beyond the specific powers granted, an agent may also have implied authority, which is not explicitly stated but is necessary to carry out the express authority.
Authority in general refers to the accepted power of an individual to make decisions and command respect. In the context of legal structures, rational-legal authority is power legitimized by laws, regulations, and rules. For example, a government has authority within its jurisdiction to enforce laws, such as tax collection, but cannot mandate actions that are unlawful. Authority must be reasonable, accepted by those it governs, and applied within its rightful jurisdiction.