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Simple English definitions for legal terms
implied authority
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A quick definition of implied authority:
Implied authority means that someone can do something for another person without being told to do it. For example, if someone asks their friend to take their car to the mechanic, the friend has the implied authority to drive the car. Sometimes, people have implied authority because of their job title or position. If someone doesn't say no to what another person is doing, that can also give them implied authority to do it again in the future.
A more thorough explanation:
Implied authority is when an agent has the power to act on behalf of a principal without being explicitly authorized to do so. This type of authority is considered actual authority.
For example, if a principal asks an agent to take their car to the mechanic, the agent has the implied authority to drive the car. This means that the agent can take any steps that are reasonably necessary to complete the task, even if they are not explicitly stated.
Another example of implied authority is when an employee has a specific job title or position, such as a purchasing manager. In this case, the employee has the implied authority to authorize purchases for the business.
It's important to note that a principal's failure to object to an agent's actions can also give rise to implied authority. This means that if the principal does not object to the agent's actions, the agent may have the implied authority to continue those actions in the future.