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What is implied authority defined as?


AAuthority given to an agent to act outside the scope of the agency agreement
BAuthority given to handle claims and process payments
CAuthority given in writing to an agent in the agency agreement
DAuthority that is not specifically given to an agent in the agency contract, but that an agent can reasonably assume to carry out his/her duties

Verified Answer :

Final answer:

Implied authority refers to the authority not specifically granted in a contract but assumed necessary for an agent to fulfill their responsibilities. This allows agents to perform actions essential to their duties, such as handling customer inquiries related to their assignments. The correct choice for the question is option D.


Explanation:

Understanding Implied Authority

Implied authority in the context of agency law refers to the authority that is not explicitly granted to an agent in a written contract but is assumed to be a part of the agent's duties. This type of authority allows the agent to perform actions that are reasonably necessary to carry out their responsibilities, even if those specific actions are not detailed in the agreement.

For example, if an insurance agent has the authority to sell policies, they might also reasonably assume they can answer customer queries about those policies, even if not explicitly stated in the contract. Therefore, the correct answer to the multiple-choice question regarding implied authority is:

  • D. Authority that is not specifically given to an agent in the agency contract, but that an agent can reasonably assume to carry out his/her duties

Learn more about Implied Authority here:

https://brainly.com/question/38629308


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