Business Associations and Relationships

The principal must manifest assent that the agent act on the principal's behalf and subject to the principal's control, and the agent must manifest assent or otherwise consent to so act. The test is objective, and the parties' own label is not controlling.

No. A gratuitous agency is valid, and agency generally may be created orally or by conduct; only certain state equal-dignity statutes require a writing, typically for agents who contract to sell land.

A principal must have capacity to do the act personally; an agent needs only minimal capacity, so even a minor may act as an agent and bind a competent principal.

Yes. Hana manifested assent that Luis act on her behalf and subject to her control, and Luis consented; the parties' characterization and lack of compensation do not prevent an agency from arising.

Actual authority exists when the agent reasonably believes, in light of the principal's manifestations to the agent, that the principal wishes the agent to act; it is measured from the agent's reasonable perspective at the time of acting.

Express authority is granted by the principal's explicit words; implied authority is the authority to do what is reasonably necessary, incidental, or customary to accomplish the expressly authorized task, or what the agent reasonably infers from the principal's conduct such as past acquiescence.