An agency:
A) is a consensual relationship that the principal and agent may form by contract or agreement.
B) must be created with consideration.
C) requires a formal writing,called a power of attorney.
D) which is voidable because of the incapacity of an agent results in only voidable contracts with third parties.

Question

Quizplus · Accepted Answer

An agency is a consensual relationship between a principal and an agent that can be created by contract or agreement, without necessarily requiring consideration or a formal writing such as a power of attorney. In some cases, an agency may be implied or created through the conduct of the parties. Additionally, if an agent lacks capacity, any resulting contracts with third parties may be void rather than voidable.

An Agency