When an agency agreement fails to adhere to the equal dignity rule,the subsequent contracts are typically considered void.

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When express authority is granted for an agent to enter into a contract that is legally required to be in writing,most states require the grant of authority also to be in writing.This requirement is known as the equal dignity rule.When an agency agreement fails to adhere to the equal dignity rule,the subsequent contracts are typically considered voidable by the principal.This rule is based on the statute of frauds.

When an Agency Agreement Fails to Adhere to the Equal