In an implied agency, the agent's authority is determined by which factors?

In an implied agency, the authority granted to the agent is typically inferred from the actions and relations established between the principal and the agent, rather than explicitly outlined in a written contract. This authority is influenced significantly by prior dealings and established customs within the industry or specific context in which the agency operates.

For instance, if a principal has consistently allowed an agent to act in a certain way in the past, it creates a pattern that implies the agent has the authority to act similarly in future situations. Additionally, customs within a specific industry can shape expectations about what an agent is allowed to do, further informing the authority of the agent, even in the absence of an explicit contract.

The other options do not align well with the concept of implied agency. A written contract relates more to expressed agency where authority is clearly defined. The principal's decision can be relevant in implied situations but isn't the sole determinant; it's the established behavior that matters more. The agent's personal preferences do not dictate their authority in an implied agency scenario, as their role should be guided by the principal's intentions and the norms of the business environment.