Asked by Duong Quoc Huy (K14_HL) on May 25, 2024
Verified
An agency relationship may be created only for a lawful purpose.
Agency Relationship
An arrangement where one party, the agent, acts on behalf of another, the principal, in dealings with third parties.
Lawful Purpose
A requirement that the objective or reason behind a contract or agreement must be legal and not against public policy for it to be enforceable.
- Identify the considerations necessary for the creation of an agency relationship.
Verified Answer
CG
Caleb GrantMay 28, 2024
Final Answer :
True
Explanation :
An agency relationship must be created for a lawful purpose, meaning the agent's actions on behalf of the principal must be legal and within the bounds of the law.
Learning Objectives
- Identify the considerations necessary for the creation of an agency relationship.