Which three elements are essential to form an agency relationship?

To establish an agency relationship, the essential elements are consent, control, and a fiduciary relationship.

Consent is critical because both the principal and the agent must agree to enter into the relationship, acknowledging their roles and responsibilities. This agreement can be explicit or implied through actions.

Control refers to the principal’s ability to direct the agent's actions in carrying out the agency task. This aspect highlights the authority that the principal holds over the agent, ensuring that the agent acts in accordance with the principal’s directives.

The fiduciary relationship establishes a trust-based connection between the principal and the agent. The agent has a duty to act in the best interests of the principal, demonstrating loyalty and good faith in managing the principal's affairs.

These three components are fundamental to forming an agency relationship, as they ensure that the relationship is based on mutual agreement, defined roles, and an ethical duty of the agent towards the principal. Other options do not encompass the necessary legal principles tied to the formation of an agency.