What type of agency is established when a client's actions suggest they have authorized an agent?

Implied agency occurs when a client’s actions indicate that they have given authority to an agent, even if there is no formal agreement or written contract in place. This type of agency is established based on the behavior and circumstances surrounding the relationship between the client and the agent. For instance, if a seller frequently communicates with a real estate agent about selling their property and relies on the agent's guidance, the agent may act on behalf of the client, creating an implied agency.

In contrast, express agency is characterized by a clear, formalized agreement where the client explicitly instructs the agent to perform certain acts. Agency by ratification occurs when a principal approves an agent's actions after the fact, effectively accepting an earlier unauthorized act. Apparent agency involves a situation where a third party believes an agency relationship exists based on the principal's conduct, but it may not be backed by the necessary authority or agreement.

Thus, in the scenario where a client's actions suggest the existence of authorization for an agent, it aligns with the concept of implied agency. This concept recognizes the roles and responsibilities that can arise through situational dynamics rather than formal declarations.