Georgia Multiple Listing Service (MLS) Practice Exam

The statement that "the law of agency is a common-law doctrine" means that it originates from historical practices and judicial decisions rather than being defined exclusively through statutes or regulations. Common law is developed over time through court rulings and precedents, meaning that it reflects the customs and judicial findings upheld in previous legal cases.

In the context of agency law, this doctrine governs the relationship between agents and principals, outlining rights, responsibilities, and duties based on established legal principles rather than just written laws. Because it is primarily based on judicial interpretation and traditions, the law of agency evolves as courts make decisions that may expand or refine these legal principles.

The other options do not correctly represent the nature of common law. Statutory law refers to laws enacted by legislatures and does not capture the essence of common-law foundations. While contractual agreements can play a role in establishing specific agency relationships, they do not define the overarching common-law framework. Lastly, state regulations are more focused on specific guidelines and rules set by state governments and do not encompass the broader historical basis of common law. Thus, option C accurately reflects the nature of agency law as having developed through tradition and judicial decisions.