Creation of the Agency Relationship

Question 1

When a party assumes consent to the relationship based solely upon inferences formed from communication with the other party–the actions, conduct or words of the parties create the contract, rather than written agreement.

Answer 1

Implied Agreement

Question 2

When principal agrees to an action that an agent has performed outside of the scope of his or her authority.

Answer 2

Ratification

It is risky to assume that a principal will ratify an action after the fact.

Question 3

When two parties express oral consent to an agency relationship.

Answer 3

Oral Agreement

Question 4

When the two parties who are forming the agency relationship set forth the terms of their relationship in writing and sign it.

Answer 4

Written Agreement

Question 5

Most agency relationships are formed by _______ _________, where the principal appoints an agent, and the agent accepts.

Answer 5

Express Agreement

Question 6

The written agreement that creates an agency relationship between a seller and a broker.

Answer 6

Listing Agreement

Question 7

This creates the relationship between a buyer and a broker.

Answer 7

Buyer Representation Agreement

Question 8

Broker B and Seller A sign a written agreement establishing Broker B’s authority to market Seller A’s property. This type of agreement is a ________ _________.

Answer 8

Listing Agreement

Question 9

Seller A asks Broker B to represent her interests, and Broker B agrees. This is an ________ _________.

Answer 9

Express Agreement

Question 10

The written agreement that creates agency between the broker and the buyer is the _____ ______________ _________.

Answer 10

Buyer Representation Agreement

Question 11

Salesperson A assists Buyer B with locating a property. Salesperson A does not disclose that she represents the seller, and they never sign an agreement. This situation could possibly create a relationship of _______ ______.

Answer 11

Implied Agency

Question 12

In Texas, a broker could not sue for commission if he or she had only a(n) ____ _________ with the principal.

Answer 12

Oral Agreement

Question 13

A _______ _________ is the safest way to outline the expectations and obligations of parties involved.

Answer 13

Written Agreement

Question 14

The method of creating an agency relationship where the principal specifically appoints or hires and individual to serve as his or her agent, and the agent accepts the position. This an be an oral or written agreement.

Answer 14

Express Agreement