Asked by Laura Derhamer on Jul 06, 2024
Verified
Because those who cannot legally enter into contracts directly cannot do so indirectly through an agent, a principal must
A) put an agency agreement into writing.
B) proffer consideration to enter into an agency relationship.
C) have contractual capacity to be a principal.
D) employ only one agent at any given time.
Contractual Capacity
Contractual capacity is the legal ability of a person or entity to enter into a contract, with sufficient understanding and agreement to the terms.
Agency Agreement
A legal contract creating a fiduciary relationship where the agent is authorized to perform actions for the principal.
Legally Enter
The act of gaining access or entrance to a place or agreement under the terms and conditions permitted by law.
- Gain insight into the dynamics of agency relationships and the duties of principals and agents.
- Comprehend the importance of written agreements in clarifying the agency relationship and duties involved.
Verified Answer
Learning Objectives
- Gain insight into the dynamics of agency relationships and the duties of principals and agents.
- Comprehend the importance of written agreements in clarifying the agency relationship and duties involved.
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