What kind of relationship may exist when disclosure of representation is done orally?

Prepare for the Champions Law of Agency Test. Use flashcards and multiple choice questions with hints and explanations to boost readiness. Get exam-ready!

When representation is disclosed orally, it can establish a permissible relationship, depending on the context and the parties involved. Oral disclosures can effectively communicate the nature of the relationship between the agent and the principal, especially in situations where formal written contracts are not practical or necessary.

This situation often arises in informal transactions or simpler arrangements, where the parties have mutual understanding and trust. It acknowledges that while a formal contract may not be present, an oral representation can still be valid if it meets the criteria set by the applicable laws and the circumstances allow for it. Importantly, both parties must still recognize and accept the terms of this oral disclosure for it to carry weight and be enforceable.

In contrast, other responses suggest rigid forms of relationships or limitations that may not accurately capture the flexibility provided by oral disclosures in certain contexts.

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