In Austin's agency contract, the insurer authorizes him to sell insurance policies, but does not specifically authorize him to make telephone calls to prospective clients. He makes such calls anyway. Does he have the authority to make these calls, and if so, what type of authority is this?

Question

Quizplus · Accepted Answer

Incidental authority is authority that is not expressly granted but is necessary to carry out an agent's expressly granted authority. In this case, making telephone calls may be necessary for Austin to sell insurance policies, even if it is not expressly authorized in the agency contract. Therefore, Austin has incidental authority to make these calls.

In Austin's Agency Contract, the Insurer Authorizes Him to Sell