How would implied authority be demonstrated in an agency relationship?

Implied authority in an agency relationship refers to the power that an agent has to perform acts that are necessary to achieve the objectives set out by the principal's express authority. This authority is not explicitly stated but is inferred from the actions or needs of the agent in fulfilling their duties. For example, if a principal explicitly authorizes an agent to manage a property, the agent might have implied authority to hire maintenance staff to take care of that property or to make minor repairs, as these actions are necessary to fulfill their role and carry out the express authority granted to them.

This understanding of implied authority is key because it allows the agent to act effectively without needing continual permission for every minor decision. In contrast, other options do not capture the essence of implied authority in relation to agency law. A written agreement, verbal consent, or a public declaration may involve express authority or communication of intent, but they do not inherently involve the necessary actions taken to carry out or support the expressly granted powers of an agent. Thus, the correct answer emphasizes the practical, operational aspect of implied authority in agency relationships.