Respond that the following statements are true or false:

1. An agency relationship must be based on an express or implied agreement that the agent will act for principal and that the principal agrees to have the agent so act.

2. An agency relationship cannot exist in the absence of a formal agreement.

3. A principal who causes a third person to believe that another person is the principal's agent can be estopped from denying the agency relationship.

4. An agency relationship may occur by operation of law in a family.

5. Generally, the agent owes the principal no duties.