What is 'necessity' in the context of agency law?

In the context of agency law, 'necessity' refers to unforeseen circumstances that require an agent to take action without obtaining prior approval from the principal. This principle recognizes that there may be situations where immediate action is essential to protect the interests of the principal, and waiting for approval could lead to detrimental consequences.

In practice, necessity allows the agent to act in a way that may not have been specifically authorized but is deemed appropriate due to the urgency or critical nature of the situation. For example, if an agent is responsible for managing a property and a plumbing emergency occurs, the agent may need to hire a repair service without first contacting the principal. This action is justified under the doctrine of necessity because it serves to prevent further damage and safeguards the principal's property.

The other choices do not align with the definition of necessity in agency law. An illegal act performed by an agent would not be justified by necessity, as legality is a fundamental aspect of agency relationships. A breach of agency rules refers to a violation of the agreed-upon conduct between the principal and agent, which does not fit the concept of acting out of necessity. Finally, formal written consent from the principal represents pre-approval for actions and does not pertain to situations where an agent must act without