With regard to the agency relationship, which of the following statements is NOT correct?

In the agency relationship, the agent acts on behalf of the principal, and this relationship is formalized through an agency contract. The agency contract allows the principal to empower the agent to perform acts or make decisions that benefit the principal. Options that correctly reflect the agency relationship include the binding nature of the agent's actions on the principal and the acknowledgment that the agent's actions can be considered as the principal's actions.

The choice stating that "an agent appoints the principal to support his or her activity and serve his or her clients" misunderstands the nature of the agency relationship. In reality, it is the principal who appoints the agent to carry out specific tasks or activities on their behalf—instead of the agent appointing the principal. This fundamental structure defines the roles and responsibilities inherent in the agency, emphasizing that the agent is there to serve the principal's interests, not the other way around.