Implied Authority of Contract is a legal term. In contract law, it is the implied ability of an individual to make a legally binding contract on behalf of an organization, by way of uniform or interaction with the public on behalf of that organization. When a person is wearing a uniform or nametag bearing the logo or trademark of a business or organization; or if that person is functioning in an obviously authorized capacity on behalf of a business or organization, that person carries an Implied Authority of Contract. Implied Authority is authority that is not express or written into the contract, but which the agent is assumed to have in order to transact the business of insurance for the principal. Implied authority is incidental to express authority since not every single detail of an agent's authority can be spelled out in the written contract.