Implied authority refers to the power an agent has to perform acts that are reasonably necessary to accomplish the purpose of an express authority granted by a principal. It is not explicitly stated but is inferred from the actions, duties, and responsibilities assigned to the agent by the principal.

Implied Authority

Implied authority

Power of an agent

Acts reasonably necessary

Express authority refers to the explicit power granted to an agent by the principal, often documented in written or spoken form, allowing the agent to act on behalf of the principal in specific matters. This form of authority is crucial in ensuring clear communication and understanding of the agent's scope of power, reducing potential disputes over the agent's actions.

express authority

The principal-agent relationship is a framework in which one party (the agent) is authorized to act on behalf of another party (the principal), often leading to challenges such as information asymmetry and conflicting interests. Effective management of this relationship requires aligning incentives and implementing monitoring mechanisms to ensure the agent acts in the principal's best interest.

Relevant Degrees

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