Agency 1 fully solved graded A+ 2023
verified
An agent is someone who - correct answer -is employed by another person
-has the legal authority to act for that person
-has the authority to exercise some degree of discretion while acting for the other
person
Some examples of agents include:
-a real estate broker acting for a homeowner to sell a home.
-a lawyer representing a client
-an investment manger who invests someone else's money.
Principal - correct answer The person who hires or appoints an agent to act on his/her
behalf.
Agency - correct answer is the name for the relationship between the agent and the
principal
For example, when a real estate broker obtains a listing to sell a home, he/she has an
agency which allows him/her to act for the homeowner.
NOTE: The term "agency' does not refer to a business but to the relationship between
the agent and the principal
Three major types of agencies - correct answer universal
general
special
Universal Agency - correct answer In a universal agency, the agent is given the legal
authority to transact matters of ALL types for the principal . Universal agencies are
extremely rare and frowned on by the courts because the agent's powers are so broad.
One of the few examples of this type of agency has become more visible recently in
professional sports. Many athletes are hiring universal agents who have the authority to:
-negotiate salary with a team owner.
-select and manage all the player's investments
-negotiate endorsement contracts
General Agency - correct answer The second type of agency is a general agency.
, This is one in which the agent is authorized to act for the principal in a specific business
or trade.
Some examples include:
-a real estate salesperson who is a general agent for the broker in the real estate
business.
-a property manager who manages property for the owner
-a sales representative in any field who sells products for a company.
Special Agency - correct answer The third type of agency is a special agency.
In a special agency, the agent is authorized to perform a specific act or transaction.
Some examples include:
-a real estate broker who is authorized to sell a home.
-a person who has power of attorney to sign a deed for someone.
Creation of an Agency - correct answer For a valid agency to be created, the objective
(purpose) of the agency must be legal.
Also, the principal must have contractual capacity, meaning:
-He/she must be legally competent.
-He/she must be of legal age (18 in Georgia)
The agent is NOT required to have contractual capacity, meaning:
-He/she must be legally competent, but
-He/she is NOT required to be of legal age.
Therefore, a minor may be an agent in a contractual agency, but a minor cannot be a
principal.
NOTE: It is not necessary that an agent be LICENSED in order to create a valid agency
relationship. A REAL ESTATE agent must be licensed, but not all agents must be
licensed.
An agent may be appointed (or hired) by - correct answer written contract
oral contract
implication
The importance of the agency's purpose may determine the method used.
In real estate, an agency's relationship between a broker and a seller is created through
a contract called a "listing agreement".
verified
An agent is someone who - correct answer -is employed by another person
-has the legal authority to act for that person
-has the authority to exercise some degree of discretion while acting for the other
person
Some examples of agents include:
-a real estate broker acting for a homeowner to sell a home.
-a lawyer representing a client
-an investment manger who invests someone else's money.
Principal - correct answer The person who hires or appoints an agent to act on his/her
behalf.
Agency - correct answer is the name for the relationship between the agent and the
principal
For example, when a real estate broker obtains a listing to sell a home, he/she has an
agency which allows him/her to act for the homeowner.
NOTE: The term "agency' does not refer to a business but to the relationship between
the agent and the principal
Three major types of agencies - correct answer universal
general
special
Universal Agency - correct answer In a universal agency, the agent is given the legal
authority to transact matters of ALL types for the principal . Universal agencies are
extremely rare and frowned on by the courts because the agent's powers are so broad.
One of the few examples of this type of agency has become more visible recently in
professional sports. Many athletes are hiring universal agents who have the authority to:
-negotiate salary with a team owner.
-select and manage all the player's investments
-negotiate endorsement contracts
General Agency - correct answer The second type of agency is a general agency.
, This is one in which the agent is authorized to act for the principal in a specific business
or trade.
Some examples include:
-a real estate salesperson who is a general agent for the broker in the real estate
business.
-a property manager who manages property for the owner
-a sales representative in any field who sells products for a company.
Special Agency - correct answer The third type of agency is a special agency.
In a special agency, the agent is authorized to perform a specific act or transaction.
Some examples include:
-a real estate broker who is authorized to sell a home.
-a person who has power of attorney to sign a deed for someone.
Creation of an Agency - correct answer For a valid agency to be created, the objective
(purpose) of the agency must be legal.
Also, the principal must have contractual capacity, meaning:
-He/she must be legally competent.
-He/she must be of legal age (18 in Georgia)
The agent is NOT required to have contractual capacity, meaning:
-He/she must be legally competent, but
-He/she is NOT required to be of legal age.
Therefore, a minor may be an agent in a contractual agency, but a minor cannot be a
principal.
NOTE: It is not necessary that an agent be LICENSED in order to create a valid agency
relationship. A REAL ESTATE agent must be licensed, but not all agents must be
licensed.
An agent may be appointed (or hired) by - correct answer written contract
oral contract
implication
The importance of the agency's purpose may determine the method used.
In real estate, an agency's relationship between a broker and a seller is created through
a contract called a "listing agreement".
