AgencyIntermediateAlaska Exam

In Alaska, an agent's authority to bind the principal (client) is limited to the scope of the:

AAgent's license
BAgency agreement and actual/apparent authority granted by the principalCorrect
CMLS membership rules
DBrokerage's standard operating procedures, under the applicable standard

Why Agency agreement and actual/apparent authority granted by the principal Is Correct

Answer B: Agency agreement and actual/apparent authority granted by the principal

An agent's authority to bind the principal to a contract is limited to the scope of authority granted in the agency agreement (actual authority) plus any apparent authority the principal's conduct has created. Agents who act beyond their authority risk personal liability.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

Key Agency Terms in This Question

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