Asked by Britanny Espinosa on Jul 12, 2024
Verified
Which of the following is true of a person's capacity to be a principal or agent?
A) To be an agent,a person must have the ability to make his own contracts,independent of the principal.
B) Any duty that a principal has the capacity to perform can be delegated to an authorized agent.
C) A principal must have the capacity to do the acts for which the agent has been retained.
D) To be an agent,a person must have the capacity to perform non-delegable obligations for the principal.
Capacity
The legal ability or competency of an individual or entity to enter into binding contracts, including being of legal age and sound mind.
Delegable Obligations
Responsibilities or duties that can be transferred from one party to another, typically within a contract or legal agreement.
Authorized Agent
an individual or entity that has been legally empowered to act on behalf of another person or entity in business transactions or legal matters.
- Recognize the capacity requirements for principals and agents.
Verified Answer
Learning Objectives
- Recognize the capacity requirements for principals and agents.
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