81. 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.
Express agency is established when there is a clear agreement between the parties, as in this case where the buyer has signed a buyer's agency agreement and agreed to pay a specific fee to the broker.
A) agreement agency.
Agreement agency is not a standard term in agency law and does not accurately describe the relationship formed through a signed agreement. While there is an agreement between the buyer and broker, the term express agency specifically refers to the clear and explicit nature of that agreement.
B) implied agency.
Implied agency arises from the actions or conduct of the parties rather than a formal agreement. In this scenario, since the buyer has signed a formal buyer's agency agreement, the relationship is not based on implied actions but on a clear, expressed intention.
C) express agency.
Express agency is characterized by a formal agreement, such as the buyer's agency agreement in this case. The explicit agreement and fee structure indicate a clear and intentional relationship between the buyer and broker, qualifying it as express agency.
D) gratuitous agency.
Gratuitous agency refers to a situation where an agent acts without expectation of a fee or compensation. In this case, since the buyer has agreed to pay a specific fee to the broker, the relationship cannot be categorized as gratuitous agency.
Conclusion
Express agency accurately describes the formal and intentional agreement between the buyer and broker, as evidenced by the signed buyer's agency agreement and the agreed-upon fee. Other options fail to capture the nature of this relationship, as they either misrepresent the agency type or lack the necessary formal agreement.