What is the term for assumed or implied powers that an agent has in their role, not specifically stated in the contract?

The term for assumed or implied powers that an agent has in their role, which are not specifically stated in the contract, is known as implied authority. This type of authority allows an agent to perform actions that are necessary to fulfill the duties assigned to them, even if those actions are not directly outlined in the contract itself.

Implied authority is derived from the agent's position and the responsibilities typically associated with that role. For example, if a real estate agent has a contract that allows them to sell properties, they would have the implied authority to complete necessary transactions, negotiate terms, or communicate with potential buyers, even if these actions are not explicitly mentioned in the contract.

Understanding implied authority is crucial for both agents and clients because it defines the scope of what an agent can perform on behalf of the client. It clarifies that agents can act within the boundaries of common practices relevant to their industry, helping facilitate smooth operations without the need for constant approval for routine tasks.