Which agency type can be created without a formal contract?

Study for the North Carolina Post Licensing 301 Exam. Prepare with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your test!

C is the correct choice because an implied agency arises from the actions and behavior of the parties involved rather than a formal written agreement. This type of agency can be established through the way the involved parties interact, leading to an assumption that an agency relationship exists. For example, if a property owner allows a person to act on their behalf in selling their property, the actions taken, combined with the passive acceptance of that conduct, can create an implied agency relationship without any formal contract being signed.

In contrast, other agency types typically require explicit agreements. Exclusive agency and written agency involve formal contracts that outline the terms and conditions of the agency relationship. Non-exclusive agency also requires some level of agreement, even if it is not as strict as exclusive arrangements. Thus, implied agency stands out as the only type that can be established solely through the actions of the parties involved, without needing a formal contractual framework.

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