What does 'agency by necessity' allow an agent to do?

Prepare for the TREC Law of Agency Exam. Study with multiple-choice questions and detailed explanations. Get confident for your test!

Agency by necessity is a legal doctrine that allows an agent to take certain actions in situations where immediate decisions are required, particularly in emergencies, without obtaining prior consent from the principal. This concept is crucial in scenarios where waiting for the principal's instructions would result in harm, loss, or failure to act.

For example, if a property is at risk due to a sudden natural disaster, an agent might need to make decisions regarding the evacuation or protection of the property to prevent significant damage. The authority granted by agency by necessity aims to ensure that the agent can respond appropriately and swiftly to protect the interests of the principal under urgent circumstances.

The other choices do not accurately reflect the purpose or function of agency by necessity. Actions that benefit the agent personally, terminate the agency relationship, or delegate authority to others do not fall within the scope of what agency by necessity is designed to address. Instead, this doctrine specifically emphasizes the agent's ability to act in emergency situations to serve the principal's best interests without delayed consent.

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