Final answer:
Implied actual authority in agency relationships is created through the inferred powers granted to an agent based on the reasonable tasks expected to achieve the purpose of the agency. It aligns with the concept of rational-legal authority, where legitimacy stems from laws and expected duties within the agent's role.
Step-by-step explanation:
Implied actual authority in the context of agency relationships is created when an agent has been given the power to perform acts that are reasonably necessary to accomplish the purpose of the agency. This type of authority is not explicitly stated but is inferred from the actions, words, or conduct of the principal in relation to the agent. For example, if a principal hires an agent to manage a business, the agent has implied actual authority to carry out tasks such as hiring staff, ordering inventory, and making sales, even if the principal did not specify these tasks. This is because such actions are a logical part of managing a business and are therefore inherently accepted power within the agent's role.
The concept of authority is relevant here as it relates to the power that people agree to follow. This is closely linked to the notion of rational-legal authority, where power is made legitimate by laws, written rules, and regulations. In agency relationships, the implied authority is often based on rational-legal principles where the agent's authority is grounded in the legal and systemic role they play, rather than in the personal wishes of the individual principal. For the authority to be recognized as legitimate, it must align with the duties and rules established by law and the understanding between the principal and agent. Unreasonable demands, such as those outside the scope of the agency purpose, would not be part of the agent's implied authority.