What type of authority allows an agent to perform tasks that are not formally stated?

Implied authority is the type of authority that allows an agent to perform tasks that may not be explicitly stated in their formal agreement or contract. This authority arises from the actions and circumstances surrounding the relationship between the principal and the agent.

For example, if an agent is hired to manage a property, while the formal agreement may only outline specific duties such as collecting rent and managing tenant relations, the agent could reasonably take additional actions like arranging for emergency repairs or handling day-to-day operational tasks that are typically necessary to fulfill their role. Implied authority ensures that the agent can act in a way that aligns with the expectations of both the principal and third parties, enabling the smooth functioning of the agency relationship.

This concept is crucial in real estate and title insurance transactions, as agents often need the flexibility to respond to unforeseen circumstances without waiting for explicit permission for every action.