Final answer:
Implied authority is an agent's reasonable assumption of power that is not explicitly outlined in an agency contract, which allows them to fulfill their duties effectively.
Step-by-step explanation:
Authority not explicitly stated in an agency contract but which an agent may reasonably infer they possess in order to carry out their duties is known as implied authority. This type of authority arises from customs and practices normally associated with the particular tasks the agent is supposed to perform. It's an essential concept in the law of agency, enabling an agent to perform functions which, while not specifically written down, are necessary to achieve the objectives of the agency.
When dealing with implied authority, it's important that the actions of an agent are consistent with the principal’s objectives and expectations laid out in the agency contract. These actions may include, for instance, purchasing supplies necessary to manage the principal’s business, if such purchases are typical for the role and not expressly forbidden by the contract.