An agency relationship may be formed without explicit terms. This is known as what?

An agency relationship formed without explicit terms is known as an implied agreement. In real estate and other fields, this occurs when the actions of the parties involved suggest that an agency relationship exists, even though there may not be a formal written or verbal agreement in place.

For instance, if a property owner allows an individual to show their property to potential buyers, the actions of both parties may indicate an understanding that the individual is acting on behalf of the owner. This kind of relationship is established through conduct and circumstances rather than through clear, defined statements or contracts.

In contrast, express agreements are characterized by overt communication where all terms and conditions are clearly articulated, while formal agreements typically involve legally binding documentation. Informed consent refers to the process where a party acknowledges understanding the nature of the relationship and consents to it, which requires more explicit terms than what an implied agreement entails. Thus, the terms of an implied agreement are derived from the behavior of the parties, emphasizing the importance of understanding how agency relationships can be established in the absence of formal consent.