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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Previous Question
For months, Sofia Turner has negotiated on Olivia Bell's behalf, and Olivia Bell has knowingly allowed others to believe Sofia Turner is acting as the representative even though nothing was signed. How could an agency relationship be found?
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?