In which scenario might implied authority be used?

Implied authority refers to the ability of an agent to act on behalf of a principal based on the principal's actions, conduct, or the context of the relationship, even if such authority is not explicitly stated in the contract.

In the scenario where the contract permits branding without explicit mention, the agent may be understood to have the authority to represent the brand in certain contexts simply because branding is an accepted practice in the industry or because of established business norms. This accepted practice implies that the agent can act in ways that align with how branding is generally performed, even if specific instructions are not detailed in the contractual agreement.

This scenario underscores the idea that implied authority can arise from the context and operational norms of the agency relationship, allowing the agent to carry out actions that are necessary for the execution of their duties, thereby facilitating effective representation for the principal. In contrast, the other scenarios, such as actions taken outside the contract or without formal responsibilities, do not typically grant implied authority in the same way.