Which documents are used to establish an agency relationship?

The choice of agency agreements or contracts as the correct answer is based on the fundamental nature of agency relationships in legal and business contexts. An agency relationship is established when one party (the agent) is authorized to act on behalf of another party (the principal) in dealings with third parties.

Agency agreements or contracts explicitly outline the terms of this relationship, including the responsibilities, authority limits, and expectations of both the agent and the principal. These documents serve as a formal record that clarifies the scope of the agent's authority and the specific tasks that the agent is authorized to perform, ensuring that both parties understand and agree to the terms of their relationship.

In contrast, partnership agreements pertain to partnerships rather than agency relationships, focusing on the terms between collaborators who share ownership of a business. Employment handbooks typically provide guidance on company policies and employee conduct rather than defining an agency relationship. Similarly, invoices and receipts are transactional documents that record purchases or sales but do not serve to establish or define any type of agency relationship. Hence, the most appropriate choice that directly pertains to the establishment of an agency relationship is the agency agreements or contracts.