Illinois Real Estate Exam Practice Question
An agreement between two parties where one party is hired to represent or act for another is called
Correct Answer: B
Rationale: An agency contract specifically establishes a relationship where one party (the agent) acts on behalf of another (the principal), facilitating transactions or decisions. This is essential in various fields, such as real estate or law, where representation is crucial.
Option A, a general contract, refers to any agreement between parties but does not specify the representative relationship. Option C, a contract of forbearance, involves a promise to refrain from taking action, not representation. Option D, a limited contract, suggests restrictions in scope but lacks the clear agency relationship defined in an agency contract.
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