A brokerage-law review asks whether everyone who receives services from an Illinois licensee automatically becomes a client. Which statement best applies?
Correct Answer
A) No. Some consumers are customers rather than clients, and the full fiduciary-style duties of representation attach only when there is a client relationship.
Illinois distinguishes clients from customers and ties representation duties to the nature of the relationship.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
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- → A Vermont licensee is asked about a designated agency firm appoints separate agents for buyer and seller. What is the best answer?
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