The buyer has just signed a buyer's agency agreement with a broker. The buyer has agreed to pay the broker a specific fee. Under the common law of agency, the relationship between the buyer and the broker would best be described as

Rationale

Under the common law of agency, the relationship between the buyer and the broker would best be described as express agency.

An express agency relationship is formed when the parties involved explicitly agree to the terms of their engagement, such as the payment of a fee for services rendered. This written agreement clearly establishes the broker's responsibilities and the buyer's obligations, signifying a mutual understanding of the agency relationship.

A (agreement agency) YOUR ANSWER

The term "agreement agency" is not a recognized legal concept within the common law of agency. While agency relationships are indeed formed through agreements, the specific terminology used in legal contexts typically refers to express, implied, or other established types of agency. Therefore, this choice fails to accurately describe the relationship established by the buyer's agency agreement.

B (implied agency) YOUR ANSWER

Implied agency arises from the actions or conduct of the parties rather than a formal agreement. In this case, there is a signed buyer's agency agreement that explicitly outlines the terms of the relationship, making it distinct from an implied agency, which does not rely on written or verbal agreements.

C (express agency) CORRECT

Express agency is characterized by a formal, explicit agreement between the principal and the agent, outlining the terms of their relationship and obligations. Since the buyer has signed an agreement and agreed to pay a specific fee to the broker, this relationship is clearly defined as express agency.

D (gratuitous agency) YOUR ANSWER

Gratuitous agency refers to a situation where an agent acts on behalf of a principal without expectation of payment or compensation. Since the buyer has agreed to pay a fee to the broker, this option does not apply, as the relationship is based on a mutual exchange of services for compensation.

Conclusion

The relationship between the buyer and the broker is best classified as express agency due to the explicit agreement detailing the fee and responsibilities. This formal arrangement contrasts with other agency types like implied or gratuitous agency, which lack the clear terms set forth in a signed agreement. Understanding these distinctions is crucial for both parties to ensure clarity in their obligations and rights under the law.

The buyer has just signed a buyer's agency agreement with a broker. The buyer has agreed to pay the broker a specific fee. Under the common law of agency, the relationship between the buyer and the broker would best be described as

Under the common law of agency, the relationship between the buyer and the broker would best be described as express agency.

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