An agency that occurs when a principal and an agent do not expressly create an agency,but is inferred from the conduct of the parties is known as ________.

Question

Quizplus · Accepted Answer

An implied agency is created when there is no express agreement between the principal and the agent, but the agency relationship is inferred from the conduct of the parties. This can happen when the principal gives the appearance of having authorized the agent's actions, either through conduct or inaction. It is also sometimes called an agency by estoppel or apparent agency. Choice A is actually another term for apparent agency. Choice B refers to a situation where a principal ratifies unauthorized acts of an agent after the fact. Choice D refers to an agency relationship where the agent has a personal interest in the subject matter of the agency, such as a real estate agent who has a financial interest in the property they are selling.

An Agency That Occurs When a Principal and an Agent