What type of agency is established through an express or implied agreement?

The correct answer is that the agency is established through an express or implied agreement, which aligns with the concept of Agency by Consent. This type of agency arises when the principal and agent have clearly indicated their mutual intent to create an agency relationship. An express agreement occurs when both parties explicitly agree, either orally or in writing, to the agency's terms. An implied agreement, on the other hand, can be inferred from the parties' actions or circumstances, even if there is no formal written or verbal contract.

In this context, Agency by Consent signifies that both parties are willing participants in the agency relationship, which is foundational to establishing trust and legal authority in the agent's actions on behalf of the principal. It emphasizes the voluntary nature of the relationship, as opposed to external circumstances or necessities dictating the agency.

The other types of agency, while valid in certain circumstances, do not fit the criteria established by an express or implied agreement. Agency by Estoppel occurs when a principal’s actions lead a third party to reasonably believe that an agency relationship exists, even if it was never formally established. Agency of Necessity arises in urgent situations where an agent must act to protect the principal's interests without prior consent. Agency by Ratification involves a situation where the principal