LAW OF AGENCY-FINAL CERTIFICATION SCRIPT 2026
QUESTIONS WITH SOLUTIONS GRADED A+
● Agency Relationship. Answer: Legal connection between principal and agent creating
duties and authority
● Creation of Agency. Answer: Agency formed by consent, necessity, or estoppel
● Capacity to be Principal. Answer: Principal must have legal capacity to perform the act
themselves
● Capacity to be Agent. Answer: Agent needs only minimal capacity to act on behalf of
principal
● Written Agency Agreement. Answer: Required for certain transactions such as real estate
● Oral Agency Agreement. Answer: Valid for most purposes unless Statute of Frauds
applies
● Implied Agency by Conduct. Answer: Actions of the parties demonstrate an agency
relationship
● Agency by Necessity. Answer: Emergency situations create authority to act without prior
consent
● Agency by Holding Out. Answer: Principal leads others to believe agency exists
● Termination Notice Requirements. Answer: Principal must notify known third parties of
agency end
● Protection of Third Parties. Answer: Third parties dealing in good faith protected despite
termination
● Actual Notice. Answer: Direct communication that agency has been terminated
● Constructive Notice. Answer: Publication in newspaper or other means notifying the
public
● Agency in Real Estate. Answer: Special rules governing representation in property
transactions
QUESTIONS WITH SOLUTIONS GRADED A+
● Agency Relationship. Answer: Legal connection between principal and agent creating
duties and authority
● Creation of Agency. Answer: Agency formed by consent, necessity, or estoppel
● Capacity to be Principal. Answer: Principal must have legal capacity to perform the act
themselves
● Capacity to be Agent. Answer: Agent needs only minimal capacity to act on behalf of
principal
● Written Agency Agreement. Answer: Required for certain transactions such as real estate
● Oral Agency Agreement. Answer: Valid for most purposes unless Statute of Frauds
applies
● Implied Agency by Conduct. Answer: Actions of the parties demonstrate an agency
relationship
● Agency by Necessity. Answer: Emergency situations create authority to act without prior
consent
● Agency by Holding Out. Answer: Principal leads others to believe agency exists
● Termination Notice Requirements. Answer: Principal must notify known third parties of
agency end
● Protection of Third Parties. Answer: Third parties dealing in good faith protected despite
termination
● Actual Notice. Answer: Direct communication that agency has been terminated
● Constructive Notice. Answer: Publication in newspaper or other means notifying the
public
● Agency in Real Estate. Answer: Special rules governing representation in property
transactions
