Which of the following is correct with regard to the capacity of an agent?
A)The incapacity of the agent disqualifies him from making a contract that is binding on his principal.
B)No mental capacity is necessary for an agent.
C)If an incompetent person who is not under guardianship appoints an agent, contracts made by that agent are voidable.
D)A corporation has no capacity to act as an agent.

Question

Quizplus · Accepted Answer

If an incompetent person who is not under guardianship appoints an agent, contracts made by that agent are voidable. This means that the contract can be cancelled by the incompetent person or their legal representative. A and B are incorrect because mental capacity is necessary for an agent to make a valid contract on behalf of their principal. D is incorrect because a corporation can act as an agent and is capable of entering into contracts.

Which of the Following Is Correct with Regard to the Capacity