What is the creation of agency dependent on?

The creation of agency is fundamentally dependent on the agreement and operation of law because it involves a mutual consent between the principal and the agent, where the agent is empowered to act on behalf of the principal. This means that for an agency relationship to exist, both parties must agree to the terms of the agency and the agent must operate within the legal framework that governs such relationships.

This concept is rooted in the principles of contract law, where an agency can be established by express agreement, which can be either written or verbal, as well as implied through the actions of the parties involved. The operation of law also plays a critical role, as certain legal doctrines may automatically create agency relationships under specific circumstances, even without a formal agreement.

In contrast, restricting the creation of agency solely to written agreements or only verbal communication fails to encompass the full range of possibilities that exist in establishing an agency. Agency can emerge from a variety of contexts and does not necessarily require one specific mode of formation. Additionally, relying on the opinion of a third party does not create an agency; it merely provides an external viewpoint on the relationship but does not influence the fundamental agreement and legal principles that define agency.