Which term describes an agency agreement formed through oral or written communication?

An agency agreement that is formed through oral or written communication is known as express agency. This type of agency is characterized by the clear, intentional agreement between the parties, where the principal explicitly communicates their intention to appoint the agent to act on their behalf in specific tasks, such as real estate transactions.

In express agency, the terms and expectations are clearly outlined, allowing both parties to understand their roles and responsibilities. The clarity and intent in the communication make express agency distinct from other types like implied agency, which arises out of the actions and conduct of the parties rather than explicit agreement.

Understanding express agency is crucial for real estate professionals, as it establishes formal relationships that can be enforced in a legal context. It is important for agents to communicate effectively and ensure that all agreements are documented to uphold the integrity of the agency relationship.