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
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Last verified: 2026-10-23