Which type of authority is not explicitly stated in a contract?

Implied authority refers to the power that is not specifically stated in a contract but is inferred from the actions, circumstances, or positions of the parties involved. It allows a representative to conduct tasks that are necessary to fulfill the obligations set forth in a contract, even if those tasks are not explicitly mentioned. For example, a manager may have the implied authority to make purchases needed for daily operations, even if the contract does not specifically state this power.

Understanding implied authority is vital in the context of surplus lines, as it can influence the scope of an agent's powers and the expectations of the insured or insurer. In contrast, express authority is clearly defined in the contract, and written authority is also explicitly documented. Direct authority denotes a direct power of execution that may not cover the nuances of implied actions necessary for completing a contract's intent. Thus, implied authority is integral when assessing the broader responsibilities that individuals might undertake in the absence of detailed contractual language.