In legal terms, what is implied authority?

Implied authority refers to the authority that is not explicitly stated but is understood to exist based on the agency relationship. This type of authority allows an agent to perform acts that are necessary to carry out their duties, even if those specific acts are not outlined in a contract. It stems from the nature of the relationship between the principal and the agent, and the assumption is that the agent can take certain measures to fulfill their responsibilities.

For example, if an agent is given the authority to manage a property, they would implicitly have the authority to make decisions that are necessary for the management of that property, even if these decisions are not detailed in a written agreement. The reasoning behind this concept is that, in order for an agent to effectively represent the principal, certain actions must be permitted, even if they aren't expressly stated.

This concept contrasts with the other options, which revolve around authority that is explicitly given through contracts, sanctioned through court orders, or limited to written documents, none of which reflect the idea of implied authority. This understanding is crucial in legal and business contexts, as it defines the scope of what an agent can reasonably do within their role.