Why is consent significant in establishing an agency relationship?

Consent is a fundamental element in establishing an agency relationship because it indicates a mutual agreement between the principal and the agent regarding the agent's authority to act on behalf of the principal. This agreement is essential for the agent to perform tasks whether it's negotiating a contract, making business decisions, or taking other actions that will legally bind the principal.

When both parties consent to the agency relationship, it clarifies the scope of authority, which ensures that the agent's actions will be recognized as valid and binding on the principal, provided they stay within the agreed-upon scope. This mutual consent creates the necessary legal framework for the agency relationship and delineates the responsibilities and expectations for both the principal and the agent.

The other options do not accurately capture the significance of consent. Since consent is a cornerstone of effectively empowering an agent, claiming it is optional undermines the necessity of this agreement. Additionally, consent does not prevent termination; both parties retain the ability to cancel the agency relationship if needed. Finally, consent does not allow the agent to act without accountability; rather, it establishes the context in which the agent must act responsibly and within their authority.