Sofia Turner introduces Ethan Price to buyers as the person authorized to negotiate terms, even though no true agency was created. A buyer reasonably relies on that appearance. What theory may bind Sofia Turner?
Correct Answer
C) Agency by estoppel
Agency by estoppel is correct because the facts match an agency relationship imposed because the principal's conduct causes a third party reasonably to believe an agency exists. That is the best description of the relationship, right, or legal concept tested here.
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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.
More General Principles Of Agency Questions
A listing agreement creates an agency relationship between:
A property management agreement between an owner and a property manager typically specifies which of the following?
What is 'designated agency' in the context of a real estate brokerage?
A real estate team receives a referral from a past client. The team leader assigns the referral to a team member. The team member shows the buyer several properties. Who is the buyer's agent?
A buyer's agent compensation can be structured as:
- → A commercial tenant is negotiating a five-year lease for retail space. The tenant hires a tenant representative broker to negotiate lease terms on the tenant's behalf. What agency relationship exists between the tenant and the tenant representative?
- → A property manager signs a lease on behalf of the property owner. The management agreement authorizes the manager to execute leases for terms up to one year. The manager signs a three-year lease with a commercial tenant. What is the likely consequence?
- → A property manager discovers that a rental unit has a significant mold problem. The manager repairs the visible mold but does not inform the property owner about the extent of the damage or the potential liability. Has the property manager violated any agency duty?
- → The minimum requirement for real estate professional advertising is:
- → Extravagant sales claims to attract buyers represent:
- → Licensed agents must ensure:
- → Real estate commissions are typically based on:
- → The document defining the broker-seller relationship is:
- → An agent with complete legal authority to act for a principal in all matters is a:
- → Under the new rules, how can a buyer's agent be compensated?
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Previous Question
For months, Sofia Turner has negotiated on Olivia Bell's behalf. Olivia knowingly allowed a third party to believe Sofia was her representative, and that third party reasonably relied on the appearance of authority. Even though nothing was signed, how could an agency relationship be found as to that third party?
Next Question
A seller and broker both agree that the listing relationship is not working and together sign a release cancelling the listing agreement. What type of termination is this?