The authority of a Principal is reflected through:

The authority of a Principal in an agency relationship is best reflected through the conduct towards the agent. This option highlights the importance of how a Principal interacts with their agent, which can establish the scope of the agent's authority to act on behalf of the Principal. If a Principal consistently allows an agent to perform certain actions or makes representations, this behavior can create an implied authority for the agent, even if it is not formally documented in writing.

For instance, if a Principal allows an agent to make decisions and complete transactions regularly, this establishes a pattern that indicates the agent has the authority to act in those specific contexts. The conduct serves as a guide to others in understanding what the agent is empowered to do, reinforcing the agent's authority through actions rather than just verbal or written communication.

While statutory regulations and written mandates can outline authority, they do not capture the dynamic nature of relationships that develop over time through consistent interactions. Personal opinions do not have legal standing in defining authority, as authority must stem from agreements or conduct recognized by both the Principal and the agent in an official capacity.