Question

When a blanket offer of sub-agency is given, when does the sub-agency relationship actually develop?

A) The sub-agency relationship develops as soon as the blanket offer is made.
B) The sub-agency relationship develops when the sub-agent accepts the offer.
C) The sub-agency relationship develops when the principal agent accepts the offer on behalf of the sub-agent.
D) The sub-agency relationship develops when the underlying transaction is completed.

Answer 1

The sub-agency relationship develops when the sub-agent accepts the offer.

Step-by-step explanation:

The correct answer is B) The sub-agency relationship develops when the sub-agent accepts the offer.

When a blanket offer of sub-agency is given, the sub-agency relationship is not automatically formed. It only develops when the sub-agent accepts the offer and agrees to act on behalf of the principal agent. The acceptance creates a legal relationship between the two parties.

For example, if a real estate agent offers a blanket sub-agency to other agents in their office, the sub-agency relationship would only form when another agent accepts the offer and agrees to represent the principal agent's clients.