What is the term for the agent's implied warranty that they have the authority to enter into a contract on behalf of another party?

The correct answer is that the term for the agent's implied warranty regarding their authority to enter into a contract on behalf of another party is "Authority." This concept is fundamental in agency law, which concerns the relationship between the agent and the principal. When an agent acts on behalf of a principal, they implicitly assure third parties that they possess the necessary authority to make binding agreements. This implied warranty protects the parties involved by ensuring that transactions are valid and enforceable, assuming the agent operates within the scope of their authority.

In contrast, autonomy refers to the independence of an agent in their decision-making, but it does not imply legal authority to act. Competence pertains to the agent's ability and qualifications to perform tasks effectively, while liability ultimately carries implications regarding legal responsibility for actions taken, which is a separate concern from the authority itself. Thus, understanding the notion of authority is crucial for comprehending the legal foundations of agency relationships.