What are the key elements of an agency relationship in Maryland?

The key elements of an agency relationship in Maryland, as reflected in the correct choice, encompass mutual consent, capacity, lawful purpose, and the agent acting on behalf of the principal.

Mutual consent signifies that both the principal and agent agree to enter into the agency relationship, which establishes the foundation of trust and duty required in such arrangements. Capacity refers to the legal ability of both parties to engage in the agency relationship, ensuring that they can understand and fulfill their respective obligations. A lawful purpose means that the objective of the agency is not illegal or against public policy, which further legitimizes the relationship. Lastly, the agent must act on behalf of the principal, which underscores the fiduciary nature of the relationship, where the agent has a responsibility to act in the best interest of the principal.

These elements collectively ensure that the agency relationship is legally valid and ethically sound, enabling both parties to operate under clearly defined roles and responsibilities. Without all of these elements, the agency may not be established or could be deemed unenforceable.