Which of the following describes an agency relationship?

An agency relationship is fundamentally defined by the consent between the principal and the agent, where the principal authorizes the agent to act on their behalf. This type of relationship is characterized by trust and agreement, and can arise from either written or verbal agreements, although written agreements are not a strict requirement. The essence of the agency relationship lies in the mutual agreement that one party (the agent) will act in the interests of another party (the principal).

In this context, "consent-based" highlights the importance of the principal's willingness to allow the agent to act for them, which is a core aspect of agency law. This mutual consent is what differentiates agency relationships from other types of relationships that do not involve such permission or authority. The absence of consent in an agency relationship would make it invalid, emphasizing the necessity of this fundamental characteristic.