Final answer:
The type of authority specified in an agency agreement is called rational-legal authority. This authority is legitimized by laws, written rules, and regulations.
Step-by-step explanation:
The type of authority specified in an agency agreement is called rational-legal authority. Rational-legal authority is power legitimized by laws, written rules, and regulations. It is vested in a particular rationale, system, or ideology rather than the person who implements it.
For example, in a nation that follows a constitution, the authority of the government comes from the rational-legal system established by the constitution. Similarly, in the workplace, authority may be established through the standards set forth in the employee handbook.