Which of the following is NOT an essential element required to establish an agency relationship?

Prepare for the Agency and Partnership Bar Exam with interactive flashcards and multiple choice questions. Understand the key concepts and enhance your skills. Start your journey to certification today!

To establish an agency relationship, several essential elements must be present, and one of them is not strictly required to be in writing. Consent between the parties is critical, as both the principal and the agent must agree to the agency relationship. This consent can often be expressed verbally or implied through actions. Control by the principal is also essential, as the principal must have the authority to direct the actions of the agent in the scope of their duties. Additionally, the agent has a duty to act on behalf of the principal, which reinforces the idea that the agent must act in the best interests of the principal.

However, written documentation is not a necessary element to establish an agency relationship. While having a written agreement can clarify the terms and help to prevent disputes, an agency can exist even in the absence of a written contract. Therefore, identifying the lack of need for written documentation as an essential element differentiates it from the fundamental principles that define an agency relationship. Thus, the absence of a written agreement does not undermine the creation of an agency relationship if the other elements are satisfied.

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