Agency authority that results from what is considered customary is known as?

Implied authority refers to the power that an agent has to perform actions that are necessary to fulfill their responsibilities, even if those actions are not specifically stated in their express authority. This authority arises from the customary practices and norms associated with a particular role or industry. For example, a real estate agent may not have explicit permission to pay for repairs on a property, but if it is customary for agents to do so in order to facilitate a sale, then they are granted implied authority to act in that manner.

Recognizing implied authority is important in agency law because it ensures that agents can operate effectively without needing to seek explicit permission for every minor decision. The concept promotes fluidity in business operations, allowing agents to respond to situations grounded in standard practice. Understanding this authority helps both agents and principals navigate their roles and responsibilities more efficiently.