Which type of agency does NOT require compensation unless specifically stated?

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Gratuitous agency refers to a type of agency relationship where an agent acts on behalf of a principal without expecting any compensation for their services. This arrangement typically arises in situations where an individual voluntarily takes on the role of an agent without a formal agreement mandating payment. Unless there is a clear stipulation indicating that the agent will receive compensation, the default understanding is that the services provided are done on a free, voluntary basis.

In contrast, the other types of agency—such as express agency, which involves explicitly outlined terms including compensation, and implied agency, where the circumstances may suggest compensation is anticipated—suggest some level of expectation regarding payment for the agent’s services. Therefore, gratuitous agency is unique in its nature of not requiring compensation unless it is explicitly stated.

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