agency

implied agency

Implied agency is an agency relationship created by the words or conduct of the parties rather than by a written or spoken agreement. If a licensee acts as though representing someone, and that person reasonably believes they are being represented, an agency may arise even without a signed contract. Accidental implied agency can create undisclosed dual agency, which is why many states require early agency disclosure.

Exam tip
Contrast implied agency (created by conduct) with express agency (created by an explicit agreement) and ostensible agency (a third party reasonably believes an agency exists due to the principal's conduct).
Example
A seller's agent gives a buyer advice on how low to offer and promises to get the buyer a good deal. The buyer may reasonably believe the agent represents them, creating an implied agency.

Related terms & state variants

Sources

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Last verified: 2026-10-23