Question

 Which of the following statements are/is correct?

 a. An agency may be found even when the parties expressly agree that they do not want to create one

 b. Agency relationships cannot exist in the absence of an express contract

 c. A court will not find an agency to exist unless there is evidence that the principal was obligated to compensate the agent

 d. both b &C

Answer 1

Answer is B and C isTrue

An agency relationship cannot exist in the absence of a formal agreement creation.which is true statement on the basis of contract law. Agent principal relationship is a contract between them. Agency means the the relationship between two persons, where in a person has the authority to act on behalf of another, commected them into a legal relationship. There are two parties in a contract of agency - principal and agent.

A court will not find an agency to exist unless there is evidence that the principal that obligated to compensate to agent is correct on the basis of agency law.

An agency relationship may be based on a formal between the parties Although one can result unintentionally, inadvertently or accidentally by their actions.so An agency may be found even when the parties expressly that agree they do not want to create one. so this is not  correct