Final answer:
In California, the three methods recognized to create an agency relationship are express agreement, implied authority, and ratification, each with distinct features defining the principal-agent relationship.
Step-by-step explanation:
In general, there are four ways to create an agency relationship: through express agreement, implied authority, ratification, and estoppel. However, in California, there are specific statutory provisions that recognize only three methods to create an agency relationship: express agreement, implied authority, and ratification.
An express agreement occurs when both the principal and the agent explicitly agree on the agency relationship, usually in writing. Implied authority is when the agent has the power to perform acts that are reasonably necessary to accomplish the purpose of the agency. Ratification happens when the principal accepts the acts of a person who acted without authorization, thereby creating an agency relationship after the fact.