- Implied authority based upon acquiescence commonly results from one of the following:
- i) The principal’s acceptance of the agent’s acts as they occur; or
- ii) The principal’s failure to object to the unauthorized actions of the agent which:
- a) affirm the agent’s belief that those actions further the principal’s objectives; and
- b) support the agent’s perceived authority to act in the future.
: Howard, the manager for La Vida Dolce, has been signing the invoices for wine (without authorization) delivered to the restaurant for the last four months, since the owner of the restaurant, Gino, has been working on opening the outside café. Gino has never expressly authorized Howard to sign for the wine orders, but when he saw Howard sign for an order on two occasions, Gino failed to object to Howard’s unauthorized action. Howard currently has implied authority by acquiescence to sign for future wine orders, and Gino will be liable for these acts.