Final answer:
Implied agency exists based on the behavior and circumstances suggesting a mutual agreement for representation without a written or spoken contract.
Step-by-step explanation:
Agency that exists as a result of actions of the parties is known as implied agency. This occurs when the actions of the parties imply that they have mutually consented to an agency relationship, rather than having a written or spoken agreement, which would form an express agency. One common example of an implied agency is when someone entrusts a friend to pick up a parcel, suggesting that they trust them to act on their behalf without the need for a written agreement. Unlike a statutory agency which is established by law, or a common agency which involves representing multiple principals, implied agency relies on the conduct and circumstances surrounding the interactions between parties.
Answer: A. Implied agency