Texas · Chapter 15 of 44

Creation and Termination of Agency

How agency is created (express, implied, ratified, ostensible) and how it terminates (performance, expiration, mutual agreement, operation of law).

15-minute read · Built for the TREC Sales Agent Exam

express agencyimplied agencyostensible agencyratificationestoppeltermination by partiestermination by operation of law

Creation of Agency

Agency can be created by: (1) EXPRESS agreement (written listing or buyer representation agreement - most common and required for exclusive arrangements in Texas). (2) IMPLIED from conduct. (3) RATIFICATION when principal approves unauthorized acts. (4) ESTOPPEL when principal allows others to reasonably believe an agency exists.

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