A more thorough explanation:

Authority refers to the power or permission to act legally on behalf of another person or entity. It can be granted intentionally by the principal or inferred from their conduct. There are different types of authority:

• Actual authority: Authority intentionally given by the principal to the agent or reasonably believed by the agent to have as a result of their dealings with the principal.
• Apparent authority: Authority that a third party reasonably believes an agent has based on their dealings with the principal, even though the principal did not confer or intend to confer the authority.
• Authority by estoppel: Another term for apparent authority.
• Constructive authority: Authority inferred from an earlier grant of authority.
• Express authority: Authority given to the agent by explicit agreement, either orally or in writing.
• Implied authority: Authority intentionally given by the principal to the agent as a result of the principal's conduct, such as their earlier acquiescence to the agent's actions.
• Incidental authority: Authority needed to carry out actual or apparent authority.
• Inherent authority: Authority of an agent arising from the agency relationship.
• Naked authority: Authority delegated solely for the principal's benefit, without giving any consideration to the agent.
• Special authority: Authority limited to an individual transaction.

Authority can also refer to the power or jurisdiction of a governmental agency or corporation that administers a public enterprise, such as a transit authority. Additionally, it can refer to a legal writing taken as definitive or decisive, such as a judicial or administrative decision cited as a precedent.

Examples:

• An employee of a company has actual authority to sign contracts on behalf of the company because the company intentionally granted them that power.
• A customer reasonably believes that a salesperson has the authority to offer a discount on a product based on their dealings with the company, even though the company did not intend to confer that authority. This is an example of apparent authority.
• A company's website lists a customer service representative as having the authority to issue refunds. Even though the company did not intend to grant that authority, a customer who contacts the representative and receives a refund can argue that the representative had apparent authority to do so.

These examples illustrate the different types of authority and how they can arise from intentional or unintentional actions by the principal. It is important for principals to clearly communicate the extent of their agents' authority to avoid confusion and potential legal issues.