Overview Flashcards
1
Q
What is common law?
A
Judge-made law (case law)
2
Q
What is statutory law?
A
Law that is enacted by the legislature
3
Q
What is administrative law?
A
The rules and regulations created by administrative agencies (FREC rules)
4
Q
What is a principal?
A
- A person who delegates authority to another
- The buyer or the seller, not both
5
Q
What is an agent?
A
- A person who accepts the authority delegated to them
- The broker
6
Q
What does it mean to “deal at arm’s length” with another?
A
- People with adverse interests, who conduct negotiations on their own behalf
7
Q
What is caveat emptor?
A
- Let the buyer beware
8
Q
What is the opposite of dealing at arm’s length & caveat emptor?
A
Fiduciary relationship
9
Q
What are the two types of agents?
A
- General agent
- Special agent
10
Q
What is a general agent?
A
- Authorized by the principal to perform acts associated with the continued operations of a certain business of the principal (ex: sales associate is a general agent of the employing broker)
11
Q
What is a special agent?
A
- Authorized by the principal to perform a specific act
