Which of the following is true regarding criteria needed for creation of the agency relationship?
A) The agency must be created for a lawful purpose, and the person hiring an agent must have contractual capacity.
B) The agency must be created for an equitable as well as a lawful purpose, and the person hiring an agent must have contractual capacity.
C) The agency must be created for a business and lawful purpose, and the person hiring an agent must have contractual capacity.
D) The agency must be created for a lawful purpose; and, although there is no requirement that the person hiring an agent have capacity, the person acting as an agent must have contractual capacity.
E) The agency must be created for an equitable as well as a lawful purpose; and, although there is no requirement that the person hiring an agent have capacity, the person acting as an agent must have contractual capacity.

Question

Quizplus · Accepted Answer

The agency must be created for a lawful purpose, and the person hiring an agent (the principal) must have contractual capacity to enter into the agency agreement. This ensures that the agreement is legally enforceable and that the principal is capable of understanding and agreeing to the terms of the contract.

Which of the Following Is True Regarding Criteria Needed for Creation