Creating an Agency Relationship
How Agency Is Formed
An agency relationship may arise through express agreement, implied conduct, necessity, ratification, or operation of law. No special form is generally required unless a statute provides otherwise.
- Express agency: Created through spoken or written agreement.
- Implied agency: Inferred from conduct or surrounding circumstances.
- Agency by ratification: Principal later approves an unauthorized act.
- Agency by necessity: Created in emergencies to protect the principal's interests.
Note
Agency depends on consent and authority rather than on a specific contract title.
Summary
Agency relationships can arise in several ways, depending on the circumstances and conduct of the parties.