AgencyIntermediateArizona Exam

Which of the following best describes an express agency relationship?

AAn agency created by the actions of the parties without a written agreement
BAn agency created by oral or written agreement between the principal and agentCorrect
CAn agency imposed by law when no agreement exists
DAn agency created by the agent acting on behalf of an undisclosed principal

Why An agency created by oral or written agreement between the principal and agent Is Correct

Answer B: An agency created by oral or written agreement between the principal and agent

Express agency is created by an explicit oral or written agreement between the principal and agent, clearly establishing the agency relationship.

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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