Which of the following is true regarding an agency relationship?

Question

Quizplus · Accepted Answer

Agency may be established by estoppel, which means that even if there is no formal agreement between the parties, a third party may reasonably believe that an agency relationship exists based on the conduct of the parties involved. Option A is incorrect because the most common form of agency relationship is the employer-employee relationship. Option B is incorrect because an agent can be an independent contractor. Option C is incorrect because an enforceable agency agreement may also be implied based on the actions of the parties involved.

Which of the Following Is True Regarding an Agency Relationship