Georgia Real Estate Salesperson Practice Exam

If two parties act in a way that suggests they have a contract, what type of relationship may exist?

1. Written agency agreement

2. Implied agency relationship

3. Express consent agreement

4. No relationship at all

The correct answer is: Implied agency relationship

The correct choice indicates that an implied agency relationship may exist when two parties act in a manner that suggests they have a contract, even if no formal written agreement has been established. An implied agency relationship arises from the actions, conduct, or circumstances of the parties rather than a written or spoken agreement. This type of relationship can be inferred when one party takes actions that lead another party to believe that an agency relationship is in effect. For instance, if a real estate agent represents a buyer by showing them properties and negotiating on their behalf without a formal contract, the buyer might assume that the agent is acting as their agent due to those actions. In such instances, the underlying conduct creates a legal responsibility for the agent to act in the best interests of the buyer, similar to a formal agency relationship. Other options do not accurately capture the situation where the apparent actions of the parties lead to the conclusion of an agency relationship. A written agency agreement requires formal documentation, express consent refers to explicitly stated agreements, and "no relationship at all" contradicts the situation where actions are indicative of an implied connection.