What is meant by express agency?

Prepare for the TREC Law of Agency Exam. Study with multiple-choice questions and detailed explanations. Get confident for your test!

Express agency refers to a relationship established explicitly through a clear agreement between the principal and the agent, which can be either written or spoken. This means that both parties have communicated their intentions and agreed upon the terms of the agency relationship directly.

In express agency, the agreement outlines the duties and responsibilities of the agent, providing clarity on the permissions granted to the agent to act on behalf of the principal. This type of agency is characterized by its directness, as the terms and conditions are stated clearly, leaving less room for ambiguity compared to other forms of agency, such as implied agency, where the agency relationship may be inferred from actions rather than from direct statements.

The other definitions do not accurately capture the essence of express agency. For instance, agency established through casual interactions would not involve the level of clarity and commitment required for express agency; similarly, an agency implied by actions relies on inference rather than explicit agreement. Finally, agency that arises after an agent completes tasks would not describe express agency, as express agency is formed before any tasks are undertaken based on mutual agreement. Thus, the focus on a specified agreement is what makes express agency distinctive and essential in legal contexts.

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