Methods of forming a Principal Agent Relationship

The video tutorial explains different types of agency relationships: express, implied, ratification, estoppel, and necessity. Express agency involves a clear agreement between principal and agent. Implied agency is inferred from actions and circumstances. Ratification occurs when a principal accepts an agent's actions after the fact. Estoppel arises when a third party reasonably believes an agency exists due to the principal's actions. Lastly, agency out of necessity is when an agent acts on behalf of a principal who cannot act themselves.

What is required for an express agency to be established?

• A verbal or written agreement showing intent

• An implied understanding between parties

• A written contract only

• A court order

How can an implied agency be recognized?

• Through a formal agreement

• By the actions and circumstances indicating intent

• Only if the agent is paid

• When the principal explicitly states it

What does ratification in an agency relationship involve?

• A third party confirming the agency

• The agent acting without any principal

• The principal accepting the benefits or obligations of the agent's actions

• The principal rejecting the agent's actions

Under what condition does estoppel create an agency relationship?

• When the principal explicitly denies the agency

• When the principal is unaware of the agent's actions

• When a third party reasonably believes in the agency due to the principal's actions

• When the agent acts without any principal

What is an agency out of necessity?

• An agency that requires court approval

• An agency formed by a written contract

• An agency that exists only in emergency situations

• An agency created when the principal is unable to act and the agent acts reasonably on their behalf