13. 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
Answer: C
The relationship between the buyer and the broker is best described as express agency.
The buyer and the broker have formally entered into a buyer's agency agreement, which establishes a clear and explicit contract outlining their respective rights and obligations. This type of arrangement is characterized by the buyer's agreement to pay a specific fee, thus solidifying the express nature of their agency relationship.
A) agreement agency
Agreement agency is not a recognized term in the context of agency law. Instead, it may imply a general understanding or informal agreement, which does not accurately capture the formalized terms set forth in the buyer's agency agreement. Therefore, this option is incorrect.
B) implied agency.
Implied agency arises from the actions or conduct of the parties rather than a formal agreement. In this case, the existence of a signed buyer's agency agreement indicates that the relationship is not implied but rather expressly defined, making this option incorrect.
C) express agency.
Express agency is established when the principal (buyer) explicitly grants authority to the agent (broker) through a formal agreement, such as the buyer's agency agreement signed in this scenario. This clearly describes the relationship as it involves a specific fee agreed upon by both parties, making this the correct choice.
D) gratuitous agency.
Gratuitous agency refers to a situation where an agent acts without expectation of compensation. Since the buyer has agreed to pay a fee to the broker, this type of agency does not apply, rendering this option incorrect.
Conclusion
Express agency is the correct characterization of the relationship between the buyer and the broker due to the formal agreement that dictates their obligations and the payment of a fee. This distinction is crucial, as it affirms that both parties have a clear understanding of their roles and responsibilities, unlike the other options which either misrepresent the nature of the agreement or lack the formal basis necessary to define the agency relationship.