What authority is implied by the actions of the agent without being expressly stated in a contract?

Implied authority refers to the powers that are not explicitly stated in a contract but are assumed to be granted based on the actions and circumstances surrounding the agent's role. This type of authority allows the agent to perform acts and make decisions that are necessary to fulfill their responsibilities, even if those specific actions are not detailed in the contract.

For example, if an insurance agent is given the responsibility to handle client policies, it is implicitly understood that the agent can perform standard tasks required to manage those policies, such as collecting payments or communicating with underwriters. These actions are expected as part of the agent's job, even though they may not be directly outlined in a written agreement.

In the context of this question, the concept of implied authority effectively captures the essence of how agents can operate within the scope of what is necessary or customary in their positions, and this allows them to act on behalf of the principal in ways that support their duties.