Asked by Lynette Madison on Jun 28, 2024
Verified
Which of the following statements is true? Agency agreements
A) may only be terminated by notice given, or by the death, insanity, bankruptcy of either principal or agent.
B) are agreements of utmost good faith on the part of the agent.
C) if arising other than through operation of law or by necessity, must be in writing to be valid.
D) would not include, by definition, Powers of Attorney.
Utmost Good Faith
A principle requiring parties to a contract to act honestly and not mislead or withhold critical information from one another.
Statutory Requirements
Legal obligations or rules that are established and enforced by legislation.
Powers of Attorney
A legal document that allows one person (the principal) to appoint another person (the agent or attorney-in-fact) to make financial, legal, and health decisions on their behalf.
- Describe the responsibilities and entitlements of participants in an agency agreement, as well as the criteria for ending the agreement.
Verified Answer
CI
Cornysia IslandJul 01, 2024
Final Answer :
B
Explanation :
Agency agreements indeed require the agent to act with utmost good faith towards the principal. This principle is fundamental in ensuring that the agent's actions are in the best interest of the principal.
Learning Objectives
- Describe the responsibilities and entitlements of participants in an agency agreement, as well as the criteria for ending the agreement.