What is an example of implied authority under the law of agency?

Implied authority in the context of agency law refers to the power that an agent can exercise when it is reasonably necessary to carry out their duties, even if it is not explicitly granted in their contract. When someone has a signed contract to act as a producer, they typically have implied authority to perform actions necessary to fulfill the obligations of that contract. This includes engaging in activities like negotiating terms or offering services to clients, which are commonly associated with the role of a producer.

In this case, having a signed contract inherently provides the agent with certain expectations of authority. While the specifics can vary depending on the jurisdiction and nature of the contract, the general understanding is that a contract establishes a framework within which implied authority operates, allowing the agent to take reasonable actions in service of the principal's interests. This means that the signed contract alone supports the notion of implied authority to carry out tasks integral to the role.

The other choices do not accurately fit the definition of implied authority as they either suggest actions requiring explicit permission or do not relate to the necessary execution of a contractual role.