What term describes the authority that is implied or presumed based on the nature of the relationship between an agent and the buyer?

The term that denotes authority implied or presumed based on the nature of the relationship between an agent and the buyer is known as implied authority. Implied authority arises from the actions and circumstances surrounding the relationship, suggesting that the agent has the ability to act on behalf of the principal in ways that are typically expected within that relationship.

For example, if an agent is tasked with managing rental properties, it would be reasonable to infer that they have the implied authority to make minor repairs or collect rent without needing explicit permission for each action. This understanding is derived from the nature of the agent's role and the expectations that typically accompany such responsibilities.

Express authority, in contrast, is granted explicitly through a contract or agreement between the principal and agent. Covert authority and inferred authority are not standard terms used in the context of agency law, and as such, do not apply here. Implied authority is essential because it helps define the boundaries of what actions an agent can justifiably take in the absence of clear directives from the principal.