Which agency form is based on a formal agreement—written or oral—that establishes the terms and conditions of the agency?

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Multiple Choice

Which agency form is based on a formal agreement—written or oral—that establishes the terms and conditions of the agency?

Explanation:
Express agency is created when there’s a clear agreement—written or oral—that lays out exactly what powers the agent has, what duties they owe, the terms and conditions, and the duration of the authority. This explicit agreement is what makes the agency form based on a formal arrangement establishing the terms. The other options describe how broad the agent’s authority is (general, special, universal) rather than how the relationship is formed, so they aren’t defined by a formal agreement to establish terms.

Express agency is created when there’s a clear agreement—written or oral—that lays out exactly what powers the agent has, what duties they owe, the terms and conditions, and the duration of the authority. This explicit agreement is what makes the agency form based on a formal arrangement establishing the terms. The other options describe how broad the agent’s authority is (general, special, universal) rather than how the relationship is formed, so they aren’t defined by a formal agreement to establish terms.

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