Which authority is NOT stated in an agent's contract but is required for the agent to conduct business?

Implied authority is the correct answer, as it refers to the powers not explicitly stated in an agent's contract but are essential for carrying out the tasks and responsibilities associated with their role. Implied authority allows agents to make decisions and take actions that are reasonable and necessary for executing their duties, based on the circumstances and the normal practices within the industry.

For example, while an agent may have an express authority outlined in their contract to sell insurance policies, they may also need to have implied authority to negotiate terms or take reasonable actions on behalf of their clients without needing to seek explicit permission each time. This helps facilitate smoother operations and allows agents to respond promptly to clients' needs.

The other types of authority listed have different characteristics: express authority is specifically granted and detailed in the contract, apparent authority refers to the power an agent appears to have to third parties, which can create a reliance on that perceived authority, and exclusive authority indicates that an agent is the sole representative for certain transactions or areas. Therefore, while all forms of authority are important in the context of an agent's operations, implied authority is the distinct type that is not formally stated in the contract but is crucial for the effective execution of an agent's responsibilities.