If an agent has certain powers without them being explicitly defined in the agency agreement, this authority is defined as:

Implied authority refers to the powers that an agent possesses which are not specifically outlined in the agency agreement but are necessary for carrying out their duties. This type of authority is understood through the nature of the relationship between the agent and the principal, as well as the customary practices in the industry. For instance, if an agent is tasked with a specific role, it is reasonable to assume that they have the authority to make decisions and take actions that are necessary to fulfill that role, even if those specific powers are not explicitly stated.

In this context, implied authority allows agents to act in a way that is consistent with the expectations of their position, facilitating effective management of tasks without needing constant explicit instructions. This is crucial in agency relationships where operational efficiency and the ability to react to circumstances can significantly affect the outcome of the agent's responsibilities.

Express authority is the opposite, as it involves powers clearly defined in writing or verbally communicated. Delegated authority refers to the allocation of authority from one agent to another, while contractual authority might imply the broader idea of authority arising from a contract but does not specifically address the implicit powers available to an agent. Thus, implied authority appropriately captures the concept of powers that exist without explicit definition.