Agency
What is 'agency by estoppel'?
AAn agency created by written contract
BAn agency created when a principal leads a third party to believe an agency exists✓ Correct
CAn agency terminated by court order
DAn agency that expires automatically after 90 days
Explanation
Agency by estoppel (ostensible agency) arises when a principal's conduct leads a third party to reasonably believe an agency relationship exists. The principal is then 'estopped' from denying it.
Related California Agency Questions
- What California form is commonly used to establish a formal buyer representation agreement?
- When does a California agency relationship typically terminate in a residential sale?
- Under California law, if a listing agent also represents the buyer in the same transaction without proper disclosure and consent, the listing agent has committed:
- A California salesperson may receive compensation for real estate services from:
- Agency by 'estoppel' means the agency is created because:
- Which of the following is NOT a fiduciary duty an agent owes to their principal?
- An agent who secretly purchases a listing from their own seller without disclosure has violated which fiduciary duty?
- Which of the following actions by a listing agent would constitute a breach of fiduciary duty to the seller?
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