What is necessary to establish an agency relationship?

To establish an agency relationship, several key components must be in place. The essential elements involve consent, which indicates that both the principal (the person who authorizes another to act on their behalf) and the agent (the person acting on behalf of the principal) agree on the agency relationship. This mutual agreement is crucial because it lays the groundwork for the responsibilities and expectations of each party.

Additionally, there must be a disclosure of what each party expects and what the agent's responsibilities will be. This clarity helps to prevent misunderstandings and ensures that the agent can act effectively within the scope of their authority.

The other choices present various aspects related to agency relationships, but they lack the full combination of necessary elements needed to create a legitimate agency. For instance, while the perception of representation might play a role in how parties view the relationship, it does not in itself establish an agency. Similarly, concepts like trust and payment might relate to specific scenarios or agreements but are not foundational to forming an agency relationship.

In summary, the correct answer highlights the importance of consent, mutual agreement, and disclosure, which are critical to establishing a valid and functioning agency relationship.