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Agency and Fiduciary Duties, 17% of the examination

Agency

A relationship in which an agent is authorized to act for a principal in dealings with third parties.

Agency may arise through an express agreement, implication from conduct, ratification, or estoppel. The relationship creates duties to the principal and can create liability for authorized acts. A written compensation agreement and the existence of agency are related questions, but they are not the same question.

See also

Fiduciary dutyThe duty of trust and confidence an agent owes a principal.Ostensible agencyAgency created when a principal intentionally or carelessly causes a third party reasonably to believe another person is the principal's agent.

Test the distinction

A relevant question from Agency and Fiduciary Duties, selected because its facts or explanation use this concept.

Agency and Fiduciary Duties ยท 17%Law, Definition and Nature of Agency Relationships, Types of Agencies, and Agents

In an agency relationship, who is the fiduciary and who is the principal?

Written to DRE's published topic list. Not a real examination question, since reproducing those is a misdemeanor under B&P Code section 123.

Primary sources

Use these authorities when a course summary, forum answer, or older flashcard conflicts with the current California rule.

Where this is tested

Laws of Agency and Fiduciary DutiesWho you represent, when that duty begins, and what you owe someone you do not represent. California runs its own disclosure regime and permits dual agency with consent, which is where borrowed national study material fails.17%Practice Agency and Fiduciary Duties34 questions on this area, every option explained.Practice

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