Under California Civil Code § 2079.23, what does the law require when the agency relationship changes in the middle of a transaction?
Correct Answer
A) Obtain the written consent of the parties to the change and confirm the new relationship in writing
Civil Code § 2079.23(a) allows the contract between principal and agent to be modified to change the agency relationship at any time before performance of the act that is the object of the agency, but only with the written consent of the parties to that relationship. Written consent is therefore the operative requirement, and the relationship actually in effect is then confirmed in writing in the purchase contract or a separate writing under Civil Code § 2079.17. Nothing is filed with the Department of Real Estate, a verbal notice satisfies neither section, and a general warning at the outset is not consent to the change that later occurred.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
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.
More Laws Of Agency Fiduciary Duties Questions
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