The equal dignity rule requires that a principal and an agent act in good faith and with mutual respect in their dealings with each other.

Question

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The equal dignity rule is a legal principle requiring that if the law requires a contract to be in writing, then the authority of an agent to enter into that contract on behalf of the principal must also be in writing. It does not pertain to the requirement of good faith and mutual respect, although those may be aspects of a healthy principal-agent relationship.

The Equal Dignity Rule Requires That a Principal and an Agent