James is a licensed salesperson affiliated with Delta Realty in Greenville, Mississippi. His broker, Patricia, assigns James to represent buyer Kevin and assigns another salesperson, Rosa, to represent seller Diane in the same transaction. Patricia does not personally represent either party. Under Mississippi law, what type of agency arrangement is most accurately described here?
Correct Answer
A) Designated agency, because Patricia has assigned different agents to represent each party
Under Mississippi agency law (Miss. Code Ann. §73-35-21 et seq.), designated agency occurs when a broker assigns specific licensees within the same firm to represent different parties in the same transaction. James is designated as Kevin's agent and Rosa is designated as Diane's agent. Each designated agent owes full fiduciary duties to their respective client, even though both work for the same brokerage. This arrangement avoids the conflicts inherent in traditional dual agency.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
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