What type of agency exists when Agent A has been working informally with Buyer B without a formal agreement?

Implied agency arises when the actions and behaviors of the parties involved suggest that an agency relationship exists, even in the absence of a formal, written agreement. In this scenario, Agent A has been working informally with Buyer B, indicating that there has been a mutual understanding and a level of trust established, which leads to the assumption that Agent A is acting on behalf of Buyer B.

This type of agency does not require explicit confirmation through a contract; instead, it is inferred from the context and conduct of the parties. For example, if Agent A provided advice, showed property, or took steps that would only be done if representing Buyer B, this indicates an implied agreement to act as an agent.

Other types of agency, such as express agency, involve a formal agreement where the parties explicitly state their relationship, which distinguishes it from the informal nature of this scenario. Limited agency refers to a specific type of agreement where an agent represents both parties in a transaction, and dual agency involves a single agent representing two separate clients in the same transaction, both of which are not applicable here since there is no formal arrangement established. Thus, the informal collaboration between Agent A and Buyer B embodies the characteristics of an implied agency.