Exam 29: Agency Formation and Termination

A power of attorney is an example of a(n) ________ agreement.

An agency contract is terminated with the death of either the principal or the agent.

Which of the following describes an agency by estoppel?

Martin, who wants to sell a house he owns, authorizes his concierge, Wilhelm, to find a potential buyer and finalize a deal above a stipulated price. Wilhelm contracts Chris, a real estate broker, and instructs him to only find a potential buyer and send them over to Wilhelm for the sale. Martin then contracts ReNowait Goodhouses, a home improvement company to renovate the house. ReNowait completes its work and Martin pays them. Chris then searches for a suitable buyer and finds one in George. George buys the house and Chris is paid for his services. What role does Chris perform?

Which of the following would lead to the termination of an agency by operation of law?

An express agency contract cannot be orally agreed upon.

Taylor gives a power of attorney to his twin brother Corey, permitting Corey to make all decisions on his behalf while he is abroad. Per the terms of the power of attorney, Corey is allowed make decisions to buy or sell stocks on Taylor's behalf, sell Taylor's real estate if he deems it to be in Taylor's best interest, pursue or defend lawsuits on Taylor's behalf, and make all other relevant decisions for Taylor. What kind of power of attorney would confer such powers to Corey?

A general power of attorney limits the agent to those acts enumerated by the agreement.

agency change in law can terminate an agency due to the impossibility of performance.

What is an independent contractor? Provide several examples.

A power of attorney where a principal confers powers on an agent to act in specified matters on the principal's behalf is referred to as a(n) ________.

An agency by ratification occurs when the principal ________.

A principal works on behalf of an agent.

If a stated time has lapsed, an agency will terminate because of an unusual change in circumstances.

Marlon intends to sell a piece of real estate he owns and contracts Nita, a real estate broker, to make the sale. In the contract, Marlon authorizes Nita to make the sale at or above a minimum price he wants and the date by which he wants the sale to be completed. The contract also stipulates that Marlon will not hire another broker to sell that piece of land until the contract period expires. Nita finds a suitable buyer, makes the sale in time, and is paid by Marlon for her services. Which of the following types of agency existed between Marlon and Nita?

An agency that occurs when a principal and an agent categorically agree to enter into an agency agreement with each other is known as a(n) ________.

Constructive notice is not valid against strangers who assert claims of apparent agency.

An agency contract is similar to other contracts in that it can be terminated by an act of the parties.

Martin, who wants to sell a house he owns, authorizes his concierge, Wilhelm, to find a potential buyer and finalize a deal above a stipulated price. Wilhelm contracts Chris, a real estate broker, and instructs him to only find a potential buyer and send them over to Wilhelm for the sale. Martin then contracts ReNowait Goodhouses, a home improvement company to renovate the house. ReNowait completes its work and Martin pays them. Chris then searches for a suitable buyer and finds one in George. George buys the house and Chris is paid for his services. What role does ReNowait Goodhouses perform?

A principal-agent relationship exists when an employer hires an employee to perform some form of physical service.