129. The buyer has just signed a buyer's agency agreement with a principal broker. The buyer has agreed to pay the principal broker a specific fee. Under the common law of agency, the relationship between the buyer and the principal broker would best be described as
Answer: C
The relationship between the buyer and the principal broker is best described as express agency.
In this scenario, the relationship is classified as express agency because the buyer has explicitly agreed to pay a specific fee to the principal broker, establishing a clear and direct agreement.
A) agreement agency.
Agreement agency is not a recognized term in the context of agency law. While it implies that there is some form of agreement, it does not accurately describe the nature of the relationship established through a buyer's agency agreement, which involves explicit terms.
B) implied agency.
Implied agency arises from actions or circumstances rather than a formal agreement. In this case, the buyer has signed a buyer's agency agreement, indicating a clear and formal understanding, thus eliminating the possibility of an implied agency.
C) express agency.
Express agency accurately reflects the relationship as it involves a clear and direct agreement between the buyer and the principal broker, where the buyer explicitly consents to pay a fee for the broker's services. This definition aligns perfectly with the situation described.
D) gratuitous agency.
Gratuitous agency refers to a relationship where the agent provides services without expectation of payment. Since the buyer has agreed to pay a specific fee to the principal broker, this option does not apply and is therefore incorrect.
Conclusion
Express agency is the correct classification of the relationship due to the explicit agreement between the buyer and the principal broker involving a fee. Other options, such as implied and gratuitous agency, do not accurately reflect the formal and contractual nature of the buyer's agency agreement, making them unsuitable choices.