What is considered the best way to create an agency relationship?

Creating an agency relationship in writing is considered the best practice because it provides a clear and formal documentation of the terms and conditions of the relationship. Written agreements help to outline the rights and responsibilities of all parties involved, which can prevent misunderstandings and disputes later on. This form of documentation is legally binding and can be referenced in case conditions need to be clarified or enforced.

Written agreements also fulfill the legal requirement for certain types of agency relationships, particularly those that must be in writing to be enforceable under the Statute of Frauds. While oral agreements, conversations, digital signatures, and mutual understandings can all play roles in establishing a relationship, they do not provide the same level of security and clarity as a written document. Additionally, written contracts can serve as evidence in legal matters, thus reinforcing their importance in formalizing an agency relationship.