Which authority allows an agent to perform routine responsibilities not specifically outlined in the contract?

Implied authority refers to the authority that is not explicitly stated in a contract but is necessary for the agent to perform their duties effectively. This type of authority allows an agent to take actions that are reasonably necessary to fulfill their responsibilities, even if those actions are not specifically outlined in their contract.

For example, if an agent is responsible for selling insurance policies, they may need to conduct assessments, answer client questions, and perform other related tasks that are essential to the sales process. These actions fall under implied authority as they support the agent's ability to serve their clients and maintain the business relationship.

This concept is important because it allows agents to operate flexibly within their role without needing detailed permission for every task they undertake as long as those tasks align with the general purpose of their position. In contrast, other forms of authority, such as express authority, involve specific powers granted in writing, while limited and general authority typically refer to restrictions or broader scopes of activities defined by the terms of the agreement.