N4 Agency

Question 1

A relationship created when one person hires another to act on his or her behalf.

Answer 1

Agency

Question 2

The person who hires an agent is known as either a ___or ___.

Answer 2

Principal, Client

Question 3

Agent

Answer 3

The person hired to represent someone else.

Question 4

Customer

Answer 4

A person not represented.

Question 5

Acronym for the SIX Fiduciary Duties:

Answer 5

CAR LOD or OLD CAR

Question 6

The Six Fiduciary Duties ARE:

Answer 6

Confidentiality Obedience
Accountability Loyalty
Reasonable Skill & Care Disclosure

Loyalty Confidentiality
Obedience Accountability
Disclosure Reasonable Skill & Care

Question 7

The fiduciary duty that prohibits an agent from disclosing a client’s motivation.

Answer 7

Confidentiality

Question 8

The fiduciary duty that requires an agent to place the client’s interest above all other interests.

Answer 8

Loyalty

Question 9

The duty that requires an agent to follow the client’s instructions.

Answer 9

Obedience

Question 10

The duty that requires an agent to protect a client from foreseeable harm.

Answer 10

Reasonable Skill & Care

Question 11

The duty that requires an agent to keep a client fully informed.

Answer 11

Disclosure

Question 12

Expressed Agency

Answer 12

An agency created through specific instruction to the agent.

Question 13

Agency created through the acts of an agent.

Answer 13

Implied Agency

Question 14

A document in which a client authorizes an agent to act and sign documents on the client’s behalf.

Answer 14

Power of Attorney

Question 15

Attorney In Fact

Answer 15

The person authorized to act under a power of Attorney.

Question 16

An agent with broad authority to act in Various business matters.

Answer 16

General Agent

Question 17

An agent who has the authority to represent principal/client in all matters.

Answer 17

Universal Agent

Question 18

An agent with limited authority.

Answer 18

Specific Agent or Special Agent

Question 19

The type of agency that occurs when one agent represents two clients in the same transaction

Answer 19

Dual Agency

Question 20

Independent Contractor

Answer 20

A person who contracts his or her services to another but is not an employee

Question 21

A person whose work can be controlled on an hour-to-hour basis by an employer.

Answer 21

Employee

Question 22

An agent’s agent.

Answer 22

Sub-agent

Question 23

7 ways In which an agency may be terminated:

1. ____________________
2. ____________________
3. ____________________
4. ____________________
5. ____________________
6. ____________________
7. ____________________

Answer 23

1. Performance
2. Mutual agreement
3. Expiration of term
4. Revocation by the principal or agent
5. Destruction of the property
6. Bankruptcy of the principal
7. Death or serious incapacity of principal or agent

Question 24

Does death of either party terminate a lease or purchase agreement?

Answer 24

No