Donald is old and has no family around. Although his mind is still sharp, Donald has severe arthritis that reduces the functioning of his hands. Because of this, Donald has begun to have some difficulty in managing his affairs. Hillary lives next door to Donald. Hillary has helped Donald around the house for years, and she has noticed that Donald is having an increasingly difficult time doing things that require fine motor coordination, like writing out checks to pay his bills. Donald invited Hillary over for a cup of tea. Hillary expected Donald to ask her to help in the yard, but Donald surprised her. Donald asked Hillary to become his agent and manage some of his affairs. Donald had written out a list of tasks that he proposed authorizing Hillary to do, including managing his checkbook, paying his bills each month, and taking charge of his prescription medications. Hillary asked a few questions and was satisfied that Donald had thought carefully about what he was asking and intended for Hillary to serve as his agent in these matters. Hillary agreed to act as Donalds agent, and the two of them shook hands to seal the deal.

Has a valid agency relationship been formed between Donald and Hillary?

Group of answer choices

1. Yes, Hillary may serve as Donalds agent, but only because Donald has no children.
2. Yes, Donald and Hillary have satisfied all of the requirements for forming an agency relationship.
3. No, Donald lacks capacity to appoint an agent.
4. No, Hillary has received no consideration in exchange for her agreement.
5. None of the Above