Which authority is considered legally binding in government contracting?

In the context of government contracting, actual authority refers to the power that a government agent or official has been expressly given to act on behalf of the government in contractual matters. This authority is legally binding because it is derived from specific legal permissions granted to the agent, which can be found in statutes, regulations, or formal delegations of authority. This means that contracts entered into by an agent with actual authority are enforceable against the government, as the agent is acting within the bounds of their granted powers.

The other options refer to forms of authority that do not carry the same legal binding effect. Implied authority may allow an agent to act in ways that are necessary to fulfill their formal duties, but it does not provide the explicit backing required for contracts to be considered legally binding. Understood authority and perceived authority lack the formal recognition necessary for legal enforceability and are not sufficient to validate contractual agreements in a government context. Hence, actual authority is the only form that establishes a clear and legally binding capability for government contracting.