Which of the following describes the situation in which 'agency by necessity' can arise?

The concept of 'agency by necessity' is rooted in situations that require immediate action to protect the principal's interests, particularly when the principal is unable to provide consent due to specific circumstances. In emergency scenarios, an agent may step in to act on behalf of the principal without prior authorization if failure to act could result in harm or significant loss.

This necessity arises because the situation requires quick decisions that cannot wait for the principal's input. For example, if a person is incapacitated and their property is at risk, an agent may need to take immediate steps to secure the property to prevent damage or loss.

Other scenarios listed do not meet the criteria for 'agency by necessity'. Regular communication with the principal does not imply an urgency that would warrant action without consent. Financial transactions that are not urgent do not necessitate immediate decision-making, and scenarios solely involving life-threatening situations would not encompass the broader array of emergencies that can trigger this type of agency. Hence, 'agency by necessity' specifically pertains to those urgent situations where immediate action is required to safeguard the interests at hand.