What is the main implication of agency by implication?

Agency by implication occurs when an agency relationship is established through the actions, conduct, or situation of the parties involved, rather than through a written or explicitly stated agreement. This form of agency is often seen in scenarios where the behavior of the principal and the agent suggests that an agency relationship exists, even if they have not formally documented it.

The correct answer highlights that the agent, by virtue of their actions and the situation, cannot deny the existence of the agency relationship. This is significant because it signifies that the agent is bound by the obligations and responsibilities that come with being in a representative role for the principal, regardless of whether a formal agreement exists or not.

In contrast, the other options imply constraints or requirements that are not inherent to agency by implication. For instance, the idea that the agent requires explicit approval to act undermines the notion of agency by implication, where the agent's authority is often derived from the circumstances rather than explicit directions. Similarly, claiming that an agency relationship must be in writing contradicts the very nature of implied agency, which can arise without formal documentation. The stipulation that the principal must be present in all dealings misrepresents the essence of agency by implication, as the principal can authorize an agent to act on their behalf independently