How is implied authority typically granted to an agent?

Implied authority is granted to an agent based on the actions and circumstances surrounding the agency relationship. This authority allows the agent to perform acts that are necessary to fulfill the duties assigned to them, even if those specific acts were not explicitly stated in any agreement. For example, if a principal hires an agent to manage a retail store, the agent implicitly has the authority to make decisions about day-to-day operations, such as hiring staff or purchasing inventory, even if these actions are not detailed in their contract.

This concept is an essential element of agency law, as it seeks to ensure that agents can effectively carry out their roles without requiring constant explicit instructions for every action they need to take. While verbal agreements, written documentation, and employment may play roles in establishing the agency relationship, it is the behavior and expressed intentions of both parties that solidify implied authority.