Which element is NOT a requirement for forming an agency relationship?

In forming an agency relationship, one critical aspect is that a mutual agreement exists between the principal and the agent. This agreement can arise through written documentation or verbal communication, meaning a formal written contract is not a strict requirement. Therefore, the absence of a written document does not prevent the establishment of an agency relationship as long as the other key elements are present, such as mutual consent, the ability of the principal to control the agent's actions, and the expectation that the agent will act in the best interest of the principal under a fiduciary duty.

Control by the principal is important because it establishes the relationship whereby the agent acts on behalf of the principal. Similarly, a fiduciary duty is vital as it ensures that the agent must act loyally and in good faith, prioritizing the principal's interests over their own. Thus, the fact that not all agency relationships require a written document confirms that this element is indeed not a strict requirement for forming the relationship.