Jake is a Montana licensed salesperson who has been working with buyer Elena for several weeks, showing her properties and advising her on market conditions in Missoula. No written agreement has been signed. Which of the following best describes Jake's agency status under Montana law at this point?
Correct Answer
B) Jake is Elena's implied agent because his conduct demonstrates he is representing her interests.
Under Montana law, agency can be created by implication through conduct, even without a written agreement. Because Jake has been actively advising Elena, showing her properties, and working to advance her interests over several weeks, an implied agency relationship may have been established. Montana license law recognizes implied agency as a valid form of agency creation, which is why licensees are strongly encouraged to use written agreements from the outset to avoid unintended implied agency obligations.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
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