How can an agency be created according to business law?

An agency can indeed be created without consideration, which means that one party does not necessarily need to provide something of value to the other in order to establish the agency relationship. An agency is formed when one party (the agent) is authorized to act on behalf of another party (the principal) in dealings with third parties. This can occur through various means, including express agreements, implied agreements, or even through the conduct of the parties involved.

The essence of forming an agency relationship lies in the mutual agreement and consent of the parties rather than the exchange of value. This allows flexibility in establishing agency, as it can arise from both formal and informal arrangements.

Other methods, such as requiring a formal written agreement or consideration from both parties, are not prerequisites for creating an agency. Many agency relationships can be effectively established based on verbal agreements or through actions that suggest one party has been given the authority to act on behalf of another, without any need for consideration. Therefore, the notion that agency can be created without consideration is a fundamental principle in business law.