Implied agency is created when an agent:
Correct Answer
B) Consistently acts on behalf of a party without a written agreement, leading that party to reasonably believe an agency relationship exists
Implied agency arises from the conduct and actions of the parties rather than from a written or express agreement. When an agent consistently acts on behalf of a person in a way that reasonably leads that person to believe an agency relationship exists, implied agency is created — even without a signed contract. Mississippi licensees should be cautious of unintentionally creating implied agency relationships.
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Related Topics & Key Terms
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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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