Louisiana Bail Bonds Practice Exam

What type of authority is given to an agent as a result of the principal's conduct?

1. Implied Authority

2. Express Authority

3. Actual Authority

4. Limited Authority

The correct answer is: Implied Authority

Implied authority is granted to an agent based on the principal's conduct rather than a specific verbal or written agreement. This type of authority arises from the actions or circumstances surrounding the relationship between the principal and the agent. For instance, if a principal consistently allows an agent to act in a particular manner or to carry out certain responsibilities without objection, it creates an expectation that the agent has the authority to act in such a way. In contrast, express authority is explicitly stated through direct communication, whether verbal or written, detailing what the agent can do. Actual authority encompasses both express and implied authority but does not specifically address the nuances of how the implied authority is derived from the principal's behavior. Limited authority refers to specific restrictions placed on the agent's power, which isn't relevant in this context. The concept of implied authority is particularly important in situations where the principal's actions can be interpreted as granting the agent certain powers, even if those powers haven't been formally articulated.