What is the most common way to establish an agency relationship?

The most common way to establish an agency relationship is through appointment. This method involves a principal specifically designating an agent to act on their behalf, typically by providing them with authority to make decisions, enter into contracts, or perform certain tasks. This appointment can be formalized through verbal or written communication, and it clearly outlines the responsibilities and authority granted to the agent.

In the context of agency relationships in the funeral service industry, this appointment process allows for clear expectations between the principal (such as a funeral home) and the agent (such as a funeral director). This clarity is essential for managing duties effectively and ensuring that both parties understand their roles in the agency relationship.

Other methods, such as contract, estoppel, or operation of law, do exist but are not as common as appointment. A contract is a more formal agreement and often requires specific terms and conditions to be defined, while estoppel relates to preventing a principal from denying an agency relationship under specific circumstances, and operation of law typically comes into play under statutory provisions or legal situations against one’s wishes. Thus, while they are valid concepts in establishing agency, they don't capture the typical approach seen in most agency relationships, which is primarily through appointment.