What term describes authority the principal intends the agent to have but does not specifically grant?

What term describes authority the principal intends the agent to have but does not specifically grant?

• A. Express Authority
• B. Apparent Authority
• C. Implied Authority
• D. Actual Authority

Answer: (C)

Implied authority is the power the principal intends the agent to have, even though it isn’t explicitly granted in writing or spoken words. It’s inferred from the agency relationship, the agent’s duties, and what’s necessary to carry out the express instructions or customary in the business. For a title agent, this means actions that are usual and reasonably necessary to accomplish the task the principal assigns, even if those actions aren’t called out in a contract. This sits under actual authority, which includes express authority (explicitly granted) and implied authority (not expressly granted but inferred). Apparent authority, by contrast, comes from how a third party perceives the agent’s power based on the principal’s representations, not from the principal’s intent to grant specific powers.

Implied authority is the power the principal intends the agent to have, even though it isn’t explicitly granted in writing or spoken words. It’s inferred from the agency relationship, the agent’s duties, and what’s necessary to carry out the express instructions or customary in the business. For a title agent, this means actions that are usual and reasonably necessary to accomplish the task the principal assigns, even if those actions aren’t called out in a contract. This sits under actual authority, which includes express authority (explicitly granted) and implied authority (not expressly granted but inferred). Apparent authority, by contrast, comes from how a third party perceives the agent’s power based on the principal’s representations, not from the principal’s intent to grant specific powers.