An agency relationship must be based on some affirmative indication that the agent agrees to act for principal and the principal agrees to have the agent so act.

Question

Quizplus · Accepted Answer

This statement is true. An agency relationship requires mutual consent and agreement between the principal and the agent, and this must be clearly indicated either by express agreement or by implication through the parties' conduct and behavior. Without such affirmative indication of consent, there can be no valid agency relationship.

An Agency Relationship Must Be Based on Some Affirmative Indication