Why will Firdale Insurance Ltd meet the agent's mileage costs after a property survey?

Firdale Insurance Ltd will meet the agent's mileage costs after a property survey because the agent has implied authority. Implied authority refers to the power of an agent to perform acts that are necessary and reasonable to fulfill the responsibilities assigned to them by the principal. In the context of conducting a property survey, the agent naturally incurs mileage costs as part of their role in representing the insurance company. Consequently, the principal (Firdale Insurance Ltd) is responsible for reimbursing such expenses as they are reasonably associated with carrying out the agent's duties.

This scenario illustrates the practical application of an agent's implied authority, demonstrating that by engaging in typical activities expected in their role, expenses incurred are covered by the principal. Options relating to agency agreements and the overall legal liabilities of a principal involve different aspects of agency relationships but do not directly address the specific context of mileage costs associated with the agent's duties.