AgencyIntermediateCalifornia Exam

Which of the following best describes an 'express agency'?

AAn agency created by the actions of the parties
BAn agency created by a written or oral agreementCorrect
CAn agency implied by law
DAn agency that cannot be terminated

Why An agency created by a written or oral agreement Is Correct

Answer B: An agency created by a written or oral agreement

Express agency is created by an explicit written or oral agreement between the principal and agent — for example, a signed listing agreement.

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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