AgencyIntermediateArizona Exam

An implied agency relationship is created when:

ABoth parties have signed a formal written agency agreement that has been registered with ADRE and notarized by a licensed Arizona notary public
BThe parties' conduct indicates an agency relationship exists even without a written agreementCorrect
CA court of competent jurisdiction issues a formal order establishing an agency relationship after a party demonstrates detrimental reliance on another's conduct
DA licensed agent publicly announces that they represent a buyer at an open house, which creates a written record of the representation under ADRE regulations

Why The parties' conduct indicates an agency relationship exists even without a written agreement Is Correct

Answer B: The parties' conduct indicates an agency relationship exists even without a written agreement

Implied agency arises from the conduct, actions, or circumstances of the parties, even without a formal written agreement. An agent who acts as if representing someone can create an implied agency.

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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