What is the minimum consideration required to create an agency?

Minimum of Rupees One Lakh
Minimum of Rupees One Thousand
No consideration at all is required
Minimum of Rupees Ten Thousand

The correct answer is C. No consideration at all is required.

Agency is a legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal). The principal gives the agent the power to act on their behalf, and the agent agrees to do so. The agency relationship can be created in a number of ways, including by contract, by estoppel, or by ratification.

There is no minimum consideration required to create an agency. In other words, the principal does not have to give the agent anything in exchange for their services. The agent may receive compensation for their services, but this is not required.

The agency relationship is a fiduciary relationship, which means that the agent has a duty to act in the best interests of the principal. The agent must not act in their own interests, and they must not make any secret profits.

The agency relationship can be terminated by either the principal or the agent. The principal can terminate the relationship at any time, for any reason. The agent can also terminate the relationship, but they must give the principal reasonable notice.

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