What kind of agency is created when an agent's actions imply authority, even without direct agreement?

The type of agency that is formed when an agent's actions imply authority, even in the absence of a direct agreement, is known as implied agency. This concept arises in situations where the behavior of the agent or the expectations of the principal suggest that the agent has the authority to act on behalf of the principal, despite a formal contractual relationship being absent.

In real estate transactions, for instance, if an agent consistently performs tasks like showing properties, negotiating terms, or communicating with potential buyers on behalf of a client, a reasonable observer might conclude that there is an understanding or implication of authority to engage in those activities. This leads to the establishment of an agency relationship based on the actions and behaviors rather than explicit agreements.

In contrast, general agency typically involves a broader scope of authority, where an agent is empowered to conduct various activities on behalf of a principal. Special agency is typically limited to specific tasks, often outlined in a formal agreement. Universal agency refers to a relationship where one agent has comprehensive powers to act on behalf of the principal in all matters. These distinctions highlight why implied agency is specifically characterized by the assumption of authority derived from actions and context rather than formal agreements.