What is an implied agency typically based on?

Implied agency is based on the inferred actions and relations between parties rather than any formal contracts or written agreements. This type of agency arises when a person's behavior or the context of their relationship suggests that they are acting on behalf of another party without a formal declaration.

For example, if a person consistently represents themselves as an agent for someone else in their dealings, even if they never signed a contract to establish this agency, an implied agency may be recognized. This can happen in situations where the principal allows such behavior, thus creating an expectation that the agent has the authority to act on their behalf.

In contrast, formal contracts and written agreements explicitly state the terms and conditions of an agency relationship, which makes them distinct from implied agency. Public announcements may inform third parties about a relationship but do not create an agency by themselves. Thus, the essence of implied agency lies in the behaviors and relationships that suggest an agency exists, making it a reflection of the intentions and perceptions formed in the absence of written documentation.