Creation and Termination of Agency

Question 1

When a person or organization acted for another person or organization without the official agreement of the principal person or organization, but the principal accepts the actions of the apparent agent, it is called

Answer 1

agent by ratification

Question 2

Does a former agent owe any duties to a former principal

Answer 2

Yes, one of these duties is confidentiality.

Question 3

A person contacts a licensee and expresses an interest to buy real estate. The licensee provides a written document that details the duties of the licensee while acting as an agent and the compensation the licensee expects to receive in return. The person signs the document. What kind of agency relationship was formed?

Answer 3

An expressed agency relationship.

Question 4

Which of these duties of an agent lasts past the conclusion of the agency relationship.

Answer 4

Confidentiality

Question 5

The most common way that real estate agency ends is through

Answer 5

Completion

Question 6

An agency relationship may be terminated by:

Answer 6

• an operation of law
• destruction of the property
• incapacity of the agent or principal

Question 7

An agent who decides not to continue representing a client may:

Answer 7

renounce the relationship

Question 8

What is the term for a termination of an agency relationship that is agreed to by both parties to the relationship?

Answer 8

Mutual rescission

Question 9

A contract is terminated because the agent neglected to file all of the necessary paperwork to make the contract legal This contract was terminated by which of the following?

Answer 9

Operation of law