Chapter 11: Agency Flashcards
The essence of the agency relationship between an agent and a principal can be best described as a relationship of…
Trust, confidence, and good faith
In an agency relationship, the principal is required to…
Provide sufficient information for the agent to complete the agents tasks
A principal and powers an agent to conduct the ongoing activities of one of her business enterprises. This is an example of…
General agency
A property seller and Powers an agent to market and sell a property on his behalf. This is an example of…
Special agency
Implied agency arises when…
A party creates an agency relationship outside of an express agreement
An agency relationship may be involuntarily terminated for which of the following reasons?
Death or incapacity of the agent
A principal discloses that she would sell her property for $375,000. During the listing period, the house is marketed for $425,000. No offers come in, and the listing expires. Two weeks later, the agent grumbles to a customer that the seller would’ve sold for less than the listed price. Which of the following is true?
The agent has violated the duty of confidentiality
A principal instruction agent to market the property only to families on the north side of town. The agent refuses to comply. In this case,…
The agent has not violated fiduciary duty
An owner’s agent is showing a buyer an apartment building. The buyer notices water stains on the ceiling and informed the agent. The agent’s best course of action is to…
Inform the seller
An agent owes customers several duties. These may be best described as…
Fairness, care, and honesty
An agent fails to discover flood marks on the walls in the basement of the property. The agent sells the property, and the buyer later soon as the agent for failing to mention the problem. In this case, the agent…
Has an exposure to a charge of negligent misrepresentation
An agent informs a buyer that a clause in a contract is standard language. After explaining the clause, the agent assures the buyer that the clause does not mean anything significant. If something goes wrong with the transaction, the agent could be liable for…
Practicing law without a license
An outside broker locates a seller for a buyer representative’s client. In this instance, the outside broker is acting as…
A sub-agent
Agent Bob, who works for Broker Bill, obtains an owner listing to lease a building. Bill’s other agent, Sue, locates a tenant for Bob’s listing. In the absence of any arrangement to the contrary, broker Bill in this instance is…
A dual agent
An agent is operating as a disclosed dual agent on the transaction. In this case, the agent…
May not represent one parties interest to the detriment of the other
