REE 3043 Study Guide - Quiz Guide: Family, Blockbusting, Listing Contract
Document Summary
Law of agency- the legal rights, duties and liabilities of principal agent and third parties as a result of the agency relationship between them governs relationship between a principal (client) and someone charged to act on principal s behalf. Principal- in brokerage, the person giving authority to an agent; in finance the amount borrower and owed on a loan. Brokers automatically must look out for the best interests of the principal and can do nothing to compromise a principals interested position or bargaining power. Universal agent - one to whom a principal delegates the power to act in all matters that can be delegated in place of the principal. Principal delegates the power to act in all matters that can be delegated in place of the principal. General agent- one who is empowered to represent a principal, often a business firm , in its business relationships.
