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.
The buyer's signed agreement with the broker indicates a clear and explicit arrangement, defining the terms of their relationship, which aligns with the definition of express agency.
A) agreement agency.
Agreement agency is not a recognized term in agency law. While it may imply that there is an agreement, it does not specify the nature of the agency relationship, making it an incorrect choice in this context.
B) implied agency.
Implied agency arises when the actions of the parties suggest an agency relationship without a formal agreement. Since the buyer has signed a formal agreement establishing the terms with the broker, this option does not accurately reflect their relationship.
C) express agency.
Express agency is characterized by a clear, written agreement between the principal and the agent, detailing the terms of their relationship. In this case, the buyer has signed a buyer's agency agreement, which confirms the existence of an express agency.
D) gratuitous agency.
Gratuitous agency refers to a situation where an agent provides services without expecting payment. Since the buyer has agreed to pay the broker a specific fee, this option is not applicable to their relationship.
Conclusion
Express agency is the correct characterization of the relationship between the buyer and the broker due to the formal agreement outlining their obligations. Other options such as implied agency, agreement agency, and gratuitous agency fail to accurately depict the nature of this contractual arrangement. Thus, express agency clearly illustrates the legal standing and expectations set forth in the buyer's agency agreement.