The authority implicitly conferred on an agent by custom, usage or a principal's conduct indicating intention to confer such authority.

• A. Express authority
• B. Actual authority
• C. Apparent authority
• D. Implied authority

Answer: (D)

Implied authority is authority inferred from the agent’s role and the principal’s conduct or from customary practice, even though it isn’t expressly stated in writing or verbally granted. When a principal’s actions, tolerance of the agent’s actions, or standard industry expectations show that the agent must be able to do certain activities to carry out the assignment, that authority is considered implied. The description—authority conferred implicitly by custom, usage, or the principal’s conduct indicating intent to confer such authority—fits this idea exactly. Express authority is explicit, and apparent authority relies on what a third party reasonably believes from the principal’s representations to that third party, not from internal conduct toward the agent.