What is a characteristic of Implied Actual Authority?

Implied Actual Authority refers to the power that is not explicitly stated but is inferred from the actions, practices, and circumstances surrounding the agent's role. It is derived from the usual practices and expectations that are commonly associated with a person's position or the nature of their work. For example, a manager may have implied authority to make certain purchasing decisions based on their position, even if those specific powers are not officially documented.

This understanding aligns with established principles of agency, where the behavior and previous dealings of an agent inform what actions they are authorized to undertake even if these actions have not been formally articulated. In practical terms, this means that stakeholders can rely on the common understanding of what is reasonably expected of someone in a particular role.

On the other hand, the other options describe attributes that do not align with the essence of Implied Actual Authority. Explicitly stated authority refers to powers that are clearly defined and documented, not implied. Documentation is not a necessary condition for Implied Actual Authority, as this type of authority can exist without formal writings. Additionally, the assertion that it applies only to high-level contracts is inaccurate, as Implied Actual Authority can pertain to a wide range of transactions and different levels of authority within an organization.