Because those who cannot legally enter into contracts directly cannot do so indirectly through an agent, a principal must
A)put an agency agreement into writing.
B)proffer consideration to enter into an agency relationship.
C)have contractual capacity to be a principal.
D)employ only one agent at any given time.

Question

Quizplus · Accepted Answer

A principal must have contractual capacity to be a principal because the law stipulates that individuals or entities must have the ability to enter into contracts themselves in order to do so through an agent. This ensures that the principal can be legally bound by the actions of the agent.

Because Those Who Cannot Legally Enter into Contracts Directly Cannot