New Jersey Real Estate Exam Practice Question
The buyer has just signed a buyer's agency agreement with a broker. The buyer has agreed to pay the broker a specific fee. Under the common law of agency, the relationship between the buyer and the broker would best be described as
Correct Answer: C
Rationale: The relationship between the buyer and the broker is best described as express agency because it is established through a signed agreement, clearly outlining the terms and the fee. This formal agreement signifies mutual consent and clarity in their roles.
Option A, agreement agency, is not a recognized term in agency law and lacks specificity.
Option B, implied agency, refers to situations where the agency relationship is inferred from actions rather than explicitly stated, which does not apply here due to the signed agreement.
Option D, gratuitous agency, involves a relationship where no fee is paid, contradicting the scenario where the buyer has agreed to a specific fee.
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