What type of agency exists even if no fee is involved?

A gratuitous agency is a type of agency formed when one party, the agent, agrees to act on behalf of another, the principal, without the expectation of receiving any compensation. This relationship can exist in various contexts, such as when a friend offers to help another friend with a task without charging a fee. The essence of a gratuitous agency lies in its voluntary nature; the agent takes on responsibilities and duties without the incentive of receiving payment.

This concept is significant because it highlights that not all agency relationships are based on a commercial transaction or fee-for-service basis. In contrast, implied agency, exclusive agency, and dual agency each involve different dynamics, often involving expectations of payment or specific contractual obligations. Therefore, understanding gratuitous agency is essential in real estate and other fields where assistance may be rendered altruistically.