BU231 Chapter Notes - Chapter 19: Fiduciary, Listing Contract, Real Estate Broker
Document Summary
Agent employment may be entirely separate, ie. an agent need not be an employee just as an employee need be an agent. Independent agents not an employee and acts on behalf of several principals or clients. Creation of an agency relationship: parties to the relationship, agent and principal. Relationship between agent and principal is expressed in the form of an agency agreement: principal and third party. 2 hoping that the proposed principal will later adopt this contract: ratification, is exactly this subsequent adoption of by the principal, need for ratification arises from: Not actually being an agent of the principal. Because an agent has exceeded their limited authority: if a principal does ratify, the effect is establishing the contract with third party retroactively as if the agent had the power all along. Note: a principal need not ratify it expressly, it can do so impliedly by assuming the benefits of a contract.
