What kind of authority allows an agent to carry out duties that are not explicitly stated in the agency agreement?

Implied authority is the correct choice because it encompasses the powers that are not directly stated in the agency agreement but are necessary for the agent to perform their duties effectively. This type of authority is derived from the actions and responsibilities traditionally associated with the role of the agent. For instance, if an insurance agent has the express authority to sell a particular policy, implied authority might allow them to negotiate terms or collect premiums, as these activities support the primary task of selling insurance, even if they are not explicitly outlined in the contract. This concept ensures that agents can fulfill their functions efficiently and adapt to various situations that arise in the course of their duties.