Question 5

The relationship between the buyer and the broker is best described as express agency.

Express agency occurs when a principal (the buyer) explicitly agrees to appoint an agent (the broker) to act on their behalf, as evidenced by the signed buyer's agency agreement.

A) agreement agency.

Agreement agency is not a commonly recognized term in agency law. While it may imply that an agreement exists, it does not specifically define the nature of the agency relationship. In this scenario, the explicit agreement between the buyer and the broker qualifies as express agency rather than a vague or undefined agreement.

B) implied agency.

Implied agency arises when an agent acts on behalf of a principal without explicit agreement, often inferred from the actions of the parties involved. In this case, since the buyer has signed a formal agreement specifying the relationship and obligations, it does not fit the criteria for implied agency.

C) express agency.

Express agency is characterized by a clear, explicit agreement between the principal and the agent, which is exactly what happens when the buyer signs the agency agreement. This formal declaration of agency establishes the duties and compensation, making it the correct description of the relationship.

D) gratuitous agency.

Gratuitous agency refers to a situation where an agent acts for the principal without expectation of compensation. In this scenario, the broker is to be paid a specific fee, which indicates that the agency relationship is not gratuitous, but rather a professional one based on mutual agreement.

Conclusion

Express agency is the definitive description of the relationship because it highlights the formal agreement created between the buyer and broker. The other options—agreement agency, implied agency, and gratuitous agency—fail to capture the explicit, compensated nature of the relationship established through the signed agreement. Thus, express agency accurately reflects the legal standing of the parties involved.