What is an essential requirement before an agent can act under 'agency by necessity'?

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

In the context of 'agency by necessity', the most critical requirement is an emergent situation that necessitates immediate action. This principle applies when an agent must act on behalf of the principal in urgent circumstances to prevent harm or to protect the principal's interests. For example, if the principal is unavailable and immediate decisions must be made to address a situation, the agent is empowered to act without prior consent.

This does not require a signed contract, as agency by necessity can exist without predefined agreements in emergencies. Moreover, court approval is not a prerequisite for the agent to take urgent action; rather, it is the necessity of the situation itself that legitimizes the agent's actions. A detailed account of past interactions may inform the agent's actions but does not constitute a necessary condition for the agent to act under the principle of agency by necessity. Thus, the presence of an emergent situation is essential for justifying the agent's authority to take those actions.

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