Which term describes implied authority in agency relationships?

• A. Implied authority
• B. Apparent authority
• C. Express authority
• D. Optional authority

Answer: (A)

Implied authority is the authority an agent naturally carries out as part of their role, even if it isn’t written or expressly spoken. It comes from the duties the agent is expected to perform and the normal operations of the agency, allowing them to carry out tasks that are reasonably necessary to fulfill their responsibilities. In contrast, express authority is clearly stated or written, and apparent authority depends on what a third party reasonably believes from the principal’s representations or conduct. Optional authority isn’t a standard term in this context. So the term that describes implied authority in agency relationships is implied authority.