Agency
Which of the following describes an 'ostensible agency' (apparent agency)?
AAn agency relationship created by a written agreement
BAn agency relationship that arises when a principal's conduct causes a third party to reasonably believe an agency exists✓ Correct
CAn agency relationship between a broker and salesperson
DA temporary agency relationship during a single transaction
Explanation
Apparent (ostensible) agency arises when a principal's words or actions cause a third party to reasonably believe that someone is the principal's agent, even without a formal agency agreement. The principal may be bound by the apparent agent's acts.
People Also Study
Related Idaho Questions
- What is 'apparent authority' (ostensible authority) in Idaho agency law?Agency
- What is 'ostensible (apparent) agency' and how might it arise unintentionally in Idaho real estate?Agency
- Which Idaho agency concept describes the situation where only one agent in a company represents a client, while another agent in the same company represents the other party?Agency
- What is 'ostensible agency' (apparent agency) in Idaho real estate?Agency
Key Terms to Know
Agency
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Study This Topic
Practice More Idaho Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Idaho Quiz →