What is an implied agency?
What will be an ideal response?
In many situations, a principal and an agent do not expressly create an agency. Instead, the agency is implied from the conduct of the parties. This type of agency is referred to as an implied agency. The extent of the agent's authority is determined from the facts and circumstances of the particular situation.
Example: A homeowner employs a real estate broker to sell his house. A water pipe breaks and begins to leak water into the house. If the homeowner cannot be contacted, the real estate broker has implied authority to hire a plumber to repair the pipe to stop the water leak. The homeowner is responsible for paying for the repairs.
You might also like to view...
The engagement quality review is a risk-based review
a. True b. False Indicate whether the statement is true or false
What did Selman & Saks hope to gain by entering the French market?
A) access to new consumer markets B) access to less expensive labor C) access to less expensive materials D) access to foreign investment incentives E) the ability to offset domestic economic cycles
Which pair of statements is BEST?
A) Cost-plus contracts are prone to budget overruns while turnkey contracts are typically underbid by the contractor. B) Cost-plus contracts are prone to a budget surplus while turnkey contracts are typically underbid by the contractor. C) Cost-plus contracts are prone to a budget surplus while turnkey contracts are typically overbid by the contractor. D) Cost-plus contracts are prone to budget overruns while turnkey contracts are typically overbid by the contractor.
Which of the following statements concerning individual medical expense insurance is (are) correct?
I. Once the deductible is satisfied, no additional deductible is payable during the calendar year. II. Family deductibles are substantially higher than individual deductibles. A) I only B) II only C) both I and II D) neither I nor II