Which of the following is true regarding agency contracts?
A) Agency contracts must clearly define the agent's compensation.
B) A contract is not required to create an agency but if a contract exists, it must meet all requirements prescribed by contract law.
C) A contract is required to create a valid agency
D) An agency contract cannot create an agency agreement longer than two years.
E) An agency contract only needs to be signed by the principal.

Question

Quizplus · Accepted Answer

A contract is not necessary to establish an agency relationship; however, if a contract is used, it must adhere to general contract law principles. This includes agreements that might be verbal or implied by conduct.

Which of the Following Is True Regarding Agency Contracts