What type of authority is assumed to be granted to an agent, although not explicitly written in the agency contract?

The concept of authority that is assumed to be granted to an agent without being explicitly stated in the agency contract is known as implied authority. This type of authority arises from the actions and circumstances surrounding the relationship between the principal and the agent. It allows the agent to perform actions that are reasonably necessary to fulfill the duties outlined in the contract.

For example, if an agent is authorized to sell a product, it is implied that the agent can also take any reasonable steps required to complete the sale, such as negotiating terms or accepting payment. These actions are typically understood as part of the agent's role, even if they are not specifically mentioned in the contract.

In contrast, express authority refers to the specific powers granted to the agent through a written agreement, while apparent authority is related to the perception of authority from the perspective of third parties. Actual authority encompasses both express and implied authority but isn’t limited to the implied powers alone. Understanding these distinctions helps clarify how agents can operate within their roles based on the established relationship with their principals.