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Simple English definitions for legal terms
implied agency
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A quick definition of implied agency:
Implied agency is a type of relationship where one person (the agent) can act on behalf of another person (the principal) without a written agreement. This can happen when the principal gives the agent the impression that they have the authority to act on their behalf, or when the agent's actions suggest that they are acting on behalf of the principal. It is important to understand that the agent can bind the principal by their words or actions, so it is crucial to be clear about the extent of the agent's authority.
A more thorough explanation:
Implied agency is a type of relationship between two parties, where one party (the agent) can act on behalf of the other party (the principal) without an express agreement. This relationship can be created by law or inferred from the actions of the parties involved.
For example, if a person hires a contractor to renovate their house, the contractor has implied agency to hire subcontractors and purchase materials on behalf of the homeowner. This is because the homeowner has given the contractor the authority to act on their behalf, even though it was not explicitly stated in the contract.
Another example of implied agency is when a parent gives their child permission to use their credit card to make purchases. The child has implied agency to make purchases on behalf of the parent, even though there was no written agreement.
Overall, implied agency is a way for parties to broaden the scope of their activities and receive the benefits of another's efforts, while still retaining control over the final outcome.