Question 13

Mutual consent to an agency relationship can be established through a written agreement, oral agreement, or action.

Mutual consent to an agency relationship is established primarily through a written agreement, oral agreement, or action taken by the parties involved.

A) action, written agreement, or legal precedent

This option incorrectly includes legal precedent as a method of establishing mutual consent. While actions and written agreements are valid means, legal precedent does not directly create mutual consent in an agency relationship.

B) written agreement, oral agreement, or action

This option accurately identifies the three methods through which mutual consent can be established. A written agreement formalizes the relationship, an oral agreement allows for verbal consent, and actions taken by the parties can demonstrate their mutual intention to create the agency relationship.

C) legal precedent, statutory law, or common law

This choice is incorrect as it focuses on legal frameworks rather than the methods of establishing mutual consent. Legal precedent, statutory law, and common law do not directly facilitate mutual consent between parties in an agency relationship.

D) common law, action, or oral agreement

While this option mentions action and oral agreement, it incorrectly includes common law. Common law refers to the legal system and rules that guide agency relationships but does not serve as a method for establishing mutual consent.

Conclusion

Option B is definitively the correct answer as it precisely identifies the three methods—written agreement, oral agreement, and action—that parties can use to establish mutual consent in an agency relationship. The other options either misidentify valid methods or refer to legal concepts that do not pertain directly to mutual consent.