Chapter 12- Law Of Agency Flashcards
If a principle would like to provide the agent authority to sign on their behalf what must be done
Expressed in writing
A relationship which one person is granted authority to represent and act for another person (the principle) in dealing with others is known as?
Agency
At common law, an agent is any person who contracts to act for or on behalf of another who in turn, is known as the principle
Agent
At common law, the person whom an agent has contracted to act for, and for whose benefit the agent is required to preform and make decisions
Principle
An agents promise or guarantee to third parties that his or her actions fall within the scope of authority given by the principal. An agent acting out side of authority breaches this
Warranty of authority
What is the only way a brokerage can act for both parties in a real estate transaction?
By sign an agreement called a “limited dual agency”
Define “ a model of agency whereby the brokerage appoints one or more specific licensees to act as the sole agents of the buyer or seller while the brokerage and its other licensees do not”
Designated Agency
What are the three ways an agency contract can be formed?
. Orally
. Written
. By Implication
What is it called when the principal agrees with the performance of the action undertaken by the previously unauthorized agent
Ratification
What are the 3 ways a contract can be terminated?
- ) Express termination
- ) Termination by conduct
- ) Operation of law
What are the 3 common law duties between an agent to a principle
- ) Contractual Duties
- ) Tort law duties
- ) Agency Duties
Can a real estate agent selling a property act of a previous client if they wish to purchase
No - they must advise the former client that the licensee cannot represent him or her
A fact that might affect the value of the property or the principles decision is known as
A material fact
