The scope of an agent’s power to act on behalf of a principal extends beyond explicitly granted permissions. This extension encompasses the ability to perform all acts reasonably necessary to achieve the objectives of the agency. This unstated power arises from the usual course of business and what is customary within a particular industry or profession. For example, a store manager, though not expressly authorized to purchase inventory, possesses the inherent ability to do so, given their position and the needs of the retail establishment.
This concept is crucial to business operations because it allows for efficient task completion and flexibility in unexpected circumstances. Without it, every action would require explicit permission, hindering productivity and potentially causing significant delays. Historically, recognizing this inherent power facilitated the growth of complex organizations, enabling delegation and the pursuit of larger-scale endeavors. It allows for the smooth operation of a business, providing a framework within which employees and agents can operate without needing direct approval for every single action.
