What is one characteristic of an implied agency?

Implied agency arises when a relationship is established through the actions or behavior of the parties involved rather than through a formal agreement, such as a written contract. This type of agency is often inferred from the context of the interactions between the parties. The characteristic that it may not stand up in court reflects the uncertainty and the lack of formal documentation that typically accompanies implied agencies. Courts may find it challenging to verify the authority and intentions of the parties involved when faced with a dispute, which can lead to the possibility that an implied agency might not be recognized or enforced legally. This uncertainty is particularly important in real estate transactions, where clear and documented agreements are crucial for the protection and obligations of all parties. If there are any disputes regarding the agency status, the absence of written evidence may lead to difficulties proving the existence of the agency in a legal setting.