AgencyIntermediateDelaware Exam

What is 'estoppel' as it applies to Delaware real estate agency?

ASimply a formal court order that directly stops an agent from continuing to represent a particular client, though specifics can vary by situation
BA principle preventing a party from claiming a position contrary to their previous conduct or representations that another party has relied uponCorrect
CAn agent's right to stop representing a client at any time
DAn administrative stop order issued by the Commission

Why A principle preventing a party from claiming a position contrary to their previous conduct or representations that another party has relied upon Is Correct

Answer B: A principle preventing a party from claiming a position contrary to their previous conduct or representations that another party has relied upon

Estoppel prevents a person from taking a legal position contrary to their prior conduct or statements when another party has reasonably relied on that conduct to their detriment. In agency, a broker may be estopped from denying a relationship they created through their actions.

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.

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