Chapter 12 – Law of Agency Flashcards
Who is an agent?
An agent is any person who contracts to act for or on behalf of another, who in turn, is known as the principal
What is an agency?
A relationship in which one person (the agent) is granted the authority to represent and act for another person (the principal) in dealings with others
Who is a principal?
The person for whom an agent has contracted to act for, and for whose benefit the agent is required to perform and make decisions
What is warranty of authority?
An agent’s promise or guarantee to third parties that his or her actions fall within the scope of authority given by the principal.
Who is the listing brokerage?
The brokerage hired by an owner/seller of a property to list the property for sale and represent the seller in the sale
Who is the listing agent?
The individual licensee working for the listing brokerage that carries out most of the duties of the brokerage to list and sell the property for the owner/seller
What is a brokerage agency?
A model of agency where the brokerage acts as the agent for the client, and as such, all of the brokerage’s licensees are considered at law to be agents for the client.
What is a limited dual agency?
An agency relationship where a brokerage or licensee acts for multiple parties in a single trade in real estate (e.g., a buyer and a seller or two buyers), but because the duty of loyalty cannot be fulfilled to both clients, the clients agree to a limited form of agency representation.
What is designated agency?
A model of agency whereby the brokerage appoints one or more specific licensees to act as the sole agent(s) of the buyer or seller, and it is the designated agent who owes the fundamental agency duties to the buyer or seller, while the brokerage and its other licensees, do not.
What is an agency contract?
An agreement under which the agent is given authority to perform actions on behalf of the principal, in return for remuneration
What is agency by implication?
An agency relationship that is established by the actions and conduct of the parties, rather than by express contract between the principal and the agent
What is estoppel?
A legal principle that prevents someone from denying or contradicting a set of facts that he or she has previously expressly or impliedly asserted to be true
What is authority?
In the context of agency law, the granting by a principal to an agent of the power to act on his or her behalf in certain specified ways
What is tort?
A private wrong or injury, other than breach of contract, for which the court will provide a remedy in the form of an action for damages
Who is a fiduciary?
A person who holds a position of trust with respect to someone else and is obliged, by virtue of the relationship of trust, to act solely in the other person’s benefit
