Which authority arises from the principal's intention for the agent to have, but not specifically granted?

Which authority arises from the principal's intention for the agent to have, but not specifically granted?

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

Answer: (B)

Implied authority is authority inferred from the principal’s intention to empower the agent to act in ways reasonably necessary to carry out the assigned tasks, even if those powers aren’t explicitly stated in writing or spoken. In title work, the principal may intend the agent to handle routine steps to close a transaction—like gathering signatures, filing documents, or coordinating with lenders—without those specific powers being spelled out. Because these actions are a natural and necessary part of completing the job, the agent is considered to have implied authority. This differs from express authority, which is directly granted in clear terms, and from apparent authority, which depends on how third parties perceive the agent’s power based on the principal’s representations.

Implied authority is authority inferred from the principal’s intention to empower the agent to act in ways reasonably necessary to carry out the assigned tasks, even if those powers aren’t explicitly stated in writing or spoken. In title work, the principal may intend the agent to handle routine steps to close a transaction—like gathering signatures, filing documents, or coordinating with lenders—without those specific powers being spelled out. Because these actions are a natural and necessary part of completing the job, the agent is considered to have implied authority. This differs from express authority, which is directly granted in clear terms, and from apparent authority, which depends on how third parties perceive the agent’s power based on the principal’s representations.