Which of the following statements regarding agency relationships is true?

The statement that oral agreements may establish agency in some cases is true because agency relationships can be formed through various means, including verbal agreements. While written agreements are often preferred for clarity and legal protection, an oral agreement between the parties can create a binding agency relationship under certain conditions. This is particularly relevant in real estate transactions where both parties understand and accept the terms of their relationship, even without formal documentation.

In many jurisdictions, including Georgia, agency relationships can arise from actions and conduct as well, not solely from written contracts. This flexibility allows for agency to be established based on the mutual understanding and assent of the parties involved, which can occur during discussions or negotiations without requiring a written contract.

Thus, the understanding that agency can be formed through both written and oral means provides essential flexibility in practical scenarios, allowing agents and clients to create an agency relationship that fits their needs, even when formalities are not yet in place.