What is implied agency?

Implied agency is established through the conduct of the parties involved rather than through explicit agreements or formal declarations. This type of agency arises when one party acts in a way that indicates an intention for another party to act on their behalf, and the other party accepts that role through their actions or behaviors.

For example, if a person consistently allows another to negotiate terms on their behalf without objection or any formal agreement, an implied agency may be in effect. This indicates that both parties have an understanding—albeit unspoken—that one is acting in the capacity of an agent for the other. Consequently, it emphasizes the importance of behavior and interactions between individuals in determining agency relationships.

Implied agency contrasts with situations where agency is set up through formal documentation or declarations. For instance, notarized documents or specific legal articles may create express agency, which requires clear, formal agreements. Thus, agency through conduct highlights the significance of the relationship dynamics and the nuances of communication between parties involved.