The creation of a valid agency relationship between a principal and an agent requires:
Correct Answer
B) consent of the principal, express or implied.
Agency rests on consent, not on paperwork. Civil Code §2298 recognizes that an agency may be actual or ostensible, and §2307 provides that an agent's authority may be conferred by precedent authorization or by subsequent ratification. A writing matters for enforcing particular agreements — a listing must be in writing to be enforced, and California requires a written buyer representation agreement — but the relationship itself can arise from the parties' conduct.
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Related Topics & Key Terms
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Key Terms:
Related Concepts
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
More Laws Of Agency Fiduciary Duties Questions
Under California law, the agency disclosure requirements apply to which types of property?
Under California law, when must a buyer's agent give the agency disclosure form to the buyer?
A broker who fails to promptly disclose their dual agency status is subject to:
A broker’s fiduciary obligation to protect a seller’s confidential information continues:
A broker has an exclusive agency listing on a property. If the owner sells the property, the broker is entitled to:
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