Service and Agency Relationships

Question 1

How can an agency relationship be created?

Answer 1

Either an oral or written agreement b/t the principal and the agent. It can also be implied from either words or actions

Question 2

List the 3 types of agency relationships and describe them

Answer 2

1. Express Agency, parties complete a written agreement outlining the relationship
2. Implied Agency, parties indicate that they have mutually consented to an agency
3. Agency Ratification and Estoppel (Ostensible Agency), relationship arises by the actions of the parties involved

Question 3

List the ways an agency relationship can be terminated

Answer 3

Contract performance, expiration of the agreement term, termination of the relationship by mutual agreement of the parties, termination of the relationship by one party

Question 4

List some ways an agency relationship can be terminated involuntarily

Answer 4

Death or incapacity of either party
Agent abandonment
Condemnation of the party, destruction of the property through fire, vandalism, or natural disaster
Renunciation by the client, Breach of the contract
Bankruptcy
Revocation of the agent’s license