Implied Agency Law and Legal Definition

Implied agency means an agency created from the conduct of the principal and agent. It is generally inferred by circumstances that imply an intention to create an agency relationship. An implied agency is an actual agency, and is a fact to be proved by deductions or inferences from other facts. As to third persons, the principal is equally liable in the case of implied agency. In cases of true implied agency the third person need not have knowledge of the principal's acts, nor should they rely on the same. The agent by implied authority being an actual agent, the principal is liable for his/her acts the same as though the authority had been express.[ Andrew v. Kolsrud, 218 Iowa 15 (Iowa 1934)]. An implied agency must be based upon facts, and facts for which the principal is responsible; and upon a natural and reasonable, but not a strained, construction of those facts.[ Weller v. Speet, 275 Mich. 655 (Mich. 1936)]