Legal Aspects Ch. 9- Agency Law Flashcards
Agency
Legal relationship in which a principal authorizes an agent to act as the principal’s representative when dealing with third parties
Fiduciary Relationship
Implies position of trust and confidence
Agent
Person who has the authority to act on behalf of another, representing the business interest of that person
Principal
Client who gives authority to an agent to represent his or her interests in dealing with third parties
Third party
Customer who may be affected by the terms of the agreement but who is not a part of the agreement
General Agency
Relationship in which a principal delegates ongoing task or duties to an agent under his or her employ
Special Agency
Relationship in which a principal delegates limited tasks or specific duties to an agent under his or her employ
Cooperating Broker
Selling agent who assists another broker by finding a buyer
Dual Agent
Broker acting as agent for both the seller and the buyer in the same transaction
Sales Associate
Licensed real estate sales person or broker whose license is held by an employing licensed broker
Right to Control
How much direction the broker exercises over the person the broker has hired
Power of Attorney
Written document that gives a person legal authority to act on behalf of another person
Ratification
Acceptance of an act already performed
Estoppel
Legal bar that prevents a person from asserting facts or rights that are not consistent with what was implied by the person’s previous behavior
Obedience
Willingness to follow the orders of others