Which of the following is NOT a way an agency relationship may be created?
Correct Answer
A) Renunciation by the agent
An agency may be created by express agreement, by implication from the parties' conduct, by ratification after the fact, or by estoppel where the principal's conduct leads a third party reasonably to believe an agency exists. Renunciation belongs at the other end of the relationship: it is the agent's unilateral withdrawal and is one of the ways an agency terminates. Because it ends an existing authority rather than bringing one into being, it is the exception here.
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Related Topics & Key Terms
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Related Concepts
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.
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
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