Implied Authority

The implied authority is not expressed to the agent either orally or in writing .

However such authority can be implied from the circumstances concerning the relationship between principle and the agent,and it is implied that agent.

• can carry out acts which are within the terms of his express authority;
• has authority to do anything which has necessary for,or incidental to carrying out of his expressed authority.
  

Usual Authorithy

When a agent carries on a particular trade or profession,his express and implied authorithy carry with them a usual authorithy.

Such authorithy enables him to perform acts which are usual in the particular trade or profession.On the other hand,if there are certain customs of a trade,he has actual authorithy to comply with such customs.Examples of usual authorithy may be given as follows:

• An investment manager with intructions to sell has a usual authorithy to sign a memorandum of the contract of sale on behalf of the vendor.
• A property agent who has authorithy to sign a contract on behalf of the owner.

Express Authorithy

An express authority may be given to an agent orally or in writing.The most important factor is that the authority given has to be expressly stated in writing.The written authority may or may not be under seal.Hence,if the writing is ambiguous,for example- open to misinterpretation ,no liability can fall on the agent provided that interprets the ambiguity in a way in which it can reasonable be construed,even though it was not the way principal intended.

Obligations Of The Priciples

The principles has always the following duties towards his agents:

• To pay remuneration and expenses as agreed;or failing agreement,as customary;or failing a custom,to pay what what is reasonable.
• Indemnify the against consequences of any act lawfully done,within his authority,on behalf of principal.

Duties Imposed On An Agent

Some of the duties imposed on an agent in addition to express contractual obligations are provided as follows:

• To render accounts to the principle required
• Not to let his own interest conflict with his obligations to the principals
  
• Not to disclosed confidential information obtained during the course of his duties as an agent to other parties except the principle insurance company.
• Not to take any party with whom he deals on behalf of the principle.
• Not to delegate his duties to a sub-agent without authority,express or implied.
• To comply with his principal's instructions and to notify him when compliance become impossible.

Duties Of An Agent

The contract of Agency between the principle and agent is normally in writing .However ,it may be verbal .It contains the terms and condition s relating to the conduct of the agency and the remuneration payable to agent.

Unlike an employee,the agent is an independent businessman who is not required to devote any specified time to the amount of business he has transacted.

Frequently,a considerable portion of time is spent of agency business outside the normal business hours.

An agent is under a duty to perform his work with care,skill and diligence and also to comply with the terms of his agency agreement.

Authority Of An Insurance Agent

An agent can act only within the authority granted to him by the principal.The authority given to an agent maybe expressed,implied or apparent.It is also to know about the usual authority of the agent and related ratification thereof.

Authority as below -

1. Express Authority
   
2. Implied Authority
   
3. Apparent Or Ostensible Authority
   
4. Ratification
   

For more details see the next post...