Which best describes how implied agency is created?
Correct Answer
B) By consistently acting on behalf of a party without a written agreement
Implied agency arises from the conduct of the parties rather than a written agreement. When an agent consistently acts on behalf of a client without a formal contract, an agency relationship may be implied by law. In Maine, licensees should be cautious about performing agency-like services without a written agreement, as their conduct alone can create an implied agency relationship and the duties that come with it.
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Related Topics & Key Terms
Related Topics:
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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