An express agency is a formal arrangement established through a written or verbal agreement between a principal and an agent. In this agreement, the principal grants the agent the authority to act on their behalf. A common example of express agency is a written listing agreement between a real estate seller and their broker, where the broker is authorized to represent the seller in the sale of the property.
Express agency is primarily used in various legal practices, including real estate, business transactions, and contract law. It is essential in situations where a principal needs someone to act on their behalf, ensuring that the agent's actions are legally binding. Users can often manage express agency agreements themselves using templates provided by services like US Legal Forms, which offer legally vetted documents tailored to specific needs.
Here are a couple of examples of abatement:
Example 1: A homeowner signs a listing agreement with a real estate broker, allowing the broker to market and sell their property. This agreement is an express agency, as it explicitly states the broker's authority to act on behalf of the homeowner.
Example 2: A business owner verbally agrees to allow an employee to negotiate contracts with suppliers on their behalf. This verbal agreement constitutes an express agency relationship. (hypothetical example)
| State | Differences |
|---|---|
| California | Requires written agreements for certain types of express agency in real estate. |
| New York | Allows both written and oral agreements, but written agreements are preferred for clarity. |
| Texas | Has specific statutory requirements for express agency agreements in real estate transactions. |
This is not a complete list. State laws vary and users should consult local rules for specific guidance.
| Term | Definition | Key Differences |
|---|---|---|
| Implied Agency | An agency relationship formed through actions or conduct, rather than a formal agreement. | Implied agency does not require explicit consent or a written agreement. |
| Agency by Necessity | A situation where an agent must act without prior consent due to an emergency. | Agency by necessity arises in urgent situations, unlike express agency which is pre-established. |
If you find yourself in a situation where express agency is relevant, consider the following steps:
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