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

Rationale

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

In express agency, the terms of the agency relationship are clearly defined and agreed upon by both parties, typically through a written contract. In this case, the buyer's agency agreement explicitly outlines the buyer's obligation to pay the principal broker a specific fee, establishing a clear, formal agency relationship.

A (agreement agency.) YOUR ANSWER

"Agreement agency" is not a recognized term in agency law; rather, it seems to be a misinterpretation of the formal agreements that establish agency relationships. While agency relationships do arise from agreements, the specific term used in legal contexts is either express or implied agency, making this choice incorrect.

B (implied agency.) YOUR ANSWER

Implied agency occurs when an agency relationship is established through the actions or circumstances surrounding the parties rather than through explicit agreement. In this scenario, since the buyer signed a written agreement specifying the terms, the relationship is not implied but rather expressly defined, rendering this choice incorrect.

C (express agency.) CORRECT

Express agency is characterized by a formal agreement that explicitly outlines the duties and obligations of both parties, which is precisely what occurs when the buyer signs the agency agreement. This choice correctly identifies the nature of the relationship established between the buyer and the principal broker.

D (gratuitous agency.) YOUR ANSWER

Gratuitous agency refers to an agency relationship where the agent does not receive compensation for their services. Since the buyer has agreed to pay the principal broker a specific fee, this choice does not accurately describe their relationship and is therefore incorrect.

Conclusion

The agency relationship between the buyer and the principal broker is best described as express agency due to the clear and formal agreement established through the buyer's agency contract. This relationship is distinguished by mutual consent on terms, including the fee, and stands in contrast to other types of agency that lack such explicit agreements. Understanding this distinction is crucial for recognizing the legal responsibilities and rights of both parties involved in the transaction.

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

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

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