Ch. 6 Test

Question 1

A party to an agency relationship who has the authority to act on behalf of another party.

Answer 1

Agent

Question 2

A party to an agency relationship who has the authority to an agent to act on his behalf.

Answer 2

Principal

Question 3

Someone outside the agency relationship with whom the agent interacts on behalf of the principal.

Answer 3

3rd party

Question 4

A clause, found in many listing agreements, which states that other members of a multiple listing service act as cooperating agents, rather than sub-agent of the seller

Answer 4

Cooperation and Compensation clause

Question 5

This type of agency is established when the parties enter into a listing agreement.

Answer 5

Seller Agency

Question 6

In this type of agency, the agent does not represent the seller.

Answer 6

Buyer Agency

Question 7

T/F: Actual authority must be express authority.

Answer 7

False

Question 8

T/F: If an agent hasn’t specifically been given agency authority, but a principal allows others to believe she has agency authority, her authority is known as ostensible authority.

Answer 8

True

Question 9

An agent who acts outside the scope of his authority may be liable to third parties for a breach of an implied warrant of authority.

Answer 9

True

Question 10

State law recognize two forms of agency relationships: general agency and special agency.

Answer 10

True

Question 11

A real estate is usually a general agent

Answer 11

False

RE agents = typically special agent bc her agency authority is generally limited to a particular tx

Question 12

The primary test as to whether an agency relationship exists is the intent of the parties.

Answer 12

True
A principal must intend to engage the agent to act as his representative in interactions with third parties, and the agent must intend to accept the engagement.

Question 13

To prove that an agency relationship exists, there must be a payment of a fee.

Answer 13

False
A fee may be used to show the intent to create an agency relationship, but it is not determinative. An agency may exist without a promise or payment of compensation.

Question 14

If an agency relationship does not exist, but an agent takes actions that the principal later approves, then an agency is created through ratification.

Answer 14

True
An agency created by ratification is created when a principal gives verbal or written approval to an agent’s actions after the fact.

Question 15

An agency by estoppel is created when an agent leads a principal to believe that the agent represents him.

Answer 15

False
Agency by estoppel is created if a Principal’s acts mislead a third party into believing that an agent represents the principal

Question 16

Creation of agency by implication is intended to protect the interests of innocent principals from an agent’s action.

Answer 16

True
Unlike estoppel, when the interests of third parties are protected from a principal’s actions, agency by implication protects the interests of a principal from the agent’s actions.

Question 17

An express agency agreement must be in writing

Answer 17

False
An agency may be created by an express oral agreement. However, a broker won’t be able to collect a commission without a written agreement.

Question 18

The parties to an agency may choose to terminate the agency through ___________, reuniciation, or revocation.

Answer 18

mutual agreement

Question 19

If an agent chooses to end an agency by ________, the agent may still be liable to the principal for damages caused by breach.

Answer 19

renunciation

Question 20

(T/F) An express agency agreement must be in writing.

Answer 20

False.

An agency may be created by an express oral agreement. However, a broker won’t be able to collect a commission without a written agreement.

Question 21

The principal may end an agency at any time through __________.

Answer 21

revocation

Question 22

An agent finds a buyer for the seller’s house. The agency relationship between agent and seller terminates because of __________ of purpose.

Answer 22

fulfillment

Question 23

If a property is destroyed by fire prior to being sold, the agency relationship terminates because of __________ of the subject matter.

Answer 23

extinction

Question 24

An agency relationship terminates by operation of law upon the death, incapacity, or __________ of either party.

Answer 24

bankruptcy

Question 25

An agent may not revoke an agency coupled with a/an __________.

Answer 25

interest

Question 26

link

Answer 26

https://quizlet.com/423917472/legal-aspects-of-real-estate-chapter-6-agency-law-flash-cards/

Question 27

link

Answer 27

https://quizlet.com/365917224/law-flash-cards/

Question 28

link 3

Answer 28

https://quizlet.com/423917472/legal-aspects-of-real-estate-chapter-6-agency-law-flash-cards/