Implied authority that covers additional actions necessary to fulfill agency duties is referred to as what type of authority?

The correct answer is that implied authority that covers additional actions necessary to fulfill agency duties is referred to as incidental authority.

Incidental authority arises from the need to perform actions that, while not explicitly outlined in the agency agreement, are necessary to effectively carry out the duties assigned to the agent. This recognizes that an agent may need to take additional, related actions in order to fulfill their responsibilities to the principal, even if those actions are not specifically stated.

In contrast, express authority is specifically granted through clear and explicit instructions from the principal to the agent. Implied authority, while similar, generally refers to those powers that are necessary to carry out the express authority granted to the agent, rather than the broader scope of incidental actions. Explicit authority, while it may sound similar to express authority, does not have a recognized definition in this context related to agency law, making it less applicable here.

Therefore, incidental authority serves as a crucial concept in agency law, ensuring that agents can take necessary actions that enable them to effectively perform their duties to their principals.