Which of the following is NOT a basis for the creation of agency?

The correct answer is D, as coercion does not serve as a valid basis for the creation of an agency relationship. An agency relationship is typically established through mutual consent between the principal and the agent, which can arise from an agreement, either expressed or implied.

In the case of agreement, both parties must voluntarily enter into the relationship. Estoppel occurs when one party leads another to believe that an agency relationship exists, and the latter relies on that representation to their detriment; thus, it creates an agency by estoppel. Necessity may come into play in situations where urgent action is required, allowing an agent to act on behalf of a principal without prior consent, mainly in emergencies.

Coercion, however, undermines the fundamental concept of mutual consent that is essential for creating an agency. If one party is coerced, they lack the free will to agree, rendering any purported agency invalid.