What are the essential elements needed to establish an agency relationship?

To establish an agency relationship, the essential elements include consent, control, and fiduciary duty. Consent refers to the agreement between the principal and the agent, where the principal authorizes the agent to act on their behalf. This mutual agreement is crucial, as it signifies the recognition of the agency relationship.

Control is significant as it highlights the principal's right to direct or oversee the agent’s activities and decisions. This element ensures that the principal maintains authority over the actions being taken on their behalf, establishing a framework within which the agent operates.

Fiduciary duty embodies the responsibility that the agent holds towards the principal, demanding loyalty, good faith, and the obligation to act in the principal's best interests. This duty is fundamental to the agency relationship as it builds trust and ensures that the agent prioritizes the principal’s interests above their own.

Together, these elements underscore the framework of an agency relationship, emphasizing the roles and responsibilities inherent in the relationship between the principal and the agent.