What type of agency is created through actions or deeds, whether intentional or otherwise?

Study for the 75 Hour Broker Pre Licensing Test. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

The correct choice is implied agency, which is established through the actions or conduct of the parties involved, rather than through formal agreement or explicit consent. In situations where one party acts in a way that suggests they are representing another party, or when the behaviors of the parties indicate an agency relationship exists, an implied agency can be formed.

For example, if a homeowner frequently allows a friend to negotiate the sale of their property without explicitly granting them permission or entering into a written agreement, the actions may imply that the friend is acting as an agent. This type of agency can arise when there is a mutual understanding, either explicit or inferred, based on the circumstances.

In contrast, express agency requires a clear and explicit agreement, typically written or verbal, outlining the terms of the agency relationship. Legal agency is not a commonly used term in agency law and is often more relevant in different contexts or jurisdictions. Estoppel agency, while related to preventing a party from denying an agency relation due to their previous conduct, specifically relies on the principle of estoppel and is not defined primarily by the actions of the parties alone.

Understanding implied agency is essential for recognizing how agency relationships can occur without formal agreements and how parties can be bound by their conduct and the perceptions of

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