What type of agency results from the words or deeds of one or both parties without a formal written agreement?

What type of agency results from the words or deeds of one or both parties without a formal written agreement?

• A. Express agency
• B. Implied agency
• C. Statutory agency
• D. Universal agency

Answer: (B)

Implied agency arises when the actions or words of either or both parties create a relationship without the need for a formal, written contract. This can occur through the behavior that suggests a mutual understanding or consent to create an agency relationship. For example, if a person regularly acts on behalf of another in business transactions and that activity is accepted by the other party, an implied agency may exist, even if there is no explicit agreement documented. In contrast, express agency is characterized by a clear and explicit agreement, often in writing, detailing the responsibilities and authority of the agent. Statutory agency refers to the authority granted by law, which typically pertains to specific government or regulatory interactions. Universal agency encompasses a broader scope, where the agent is given unlimited authority to act on behalf of the principal in all matters, usually defined through a formal agreement. Thus, while other forms of agency require more clear definitions or formal agreements, implied agency is established through the implicit understanding created by the interactions and conduct of the parties involved.

Implied agency arises when the actions or words of either or both parties create a relationship without the need for a formal, written contract. This can occur through the behavior that suggests a mutual understanding or consent to create an agency relationship. For example, if a person regularly acts on behalf of another in business transactions and that activity is accepted by the other party, an implied agency may exist, even if there is no explicit agreement documented.

In contrast, express agency is characterized by a clear and explicit agreement, often in writing, detailing the responsibilities and authority of the agent. Statutory agency refers to the authority granted by law, which typically pertains to specific government or regulatory interactions. Universal agency encompasses a broader scope, where the agent is given unlimited authority to act on behalf of the principal in all matters, usually defined through a formal agreement. Thus, while other forms of agency require more clear definitions or formal agreements, implied agency is established through the implicit understanding created by the interactions and conduct of the parties involved.