What type of authority allows an agent to perform actions not explicitly stated in the agreement?

Prepare for the TREC Law of Agency Exam. Study with multiple-choice questions and detailed explanations. Get confident for your test!

Implied authority is the type of authority that allows an agent to perform actions not explicitly stated in the agreement. This concept arises when the agent is granted the power to act on behalf of the principal in a manner that is necessary to carry out the duties that are expressly granted.

For instance, if an agent is authorized to manage a property, they may have the implied authority to make necessary repairs or to hire service providers, even if these actions are not specifically mentioned in their contract. This assumption is based on what is considered reasonable and customary in relation to the express authority given to the agent and the specific situation.

In contrast, express authority refers to clearly defined, written or spoken instructions given by the principal to the agent. Special authority is typically reserved for very specific tasks or transactions, whereas general authority encompasses a wider range of activities but still relies on clear terms set forth by the principal.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy