Asked by Brandy Thatcher on Jul 02, 2024
Because she is a minor,Sarah cannot enter into contracts on her own behalf although she is perfectly competent.Her mother wishes to make Sarah an agent of the family business,and Sarah will be responsible for entering into contracts as an agent.Can Sarah act as an agent of the company?
A) No,because she is a minor.
B) No,because she does not have the capacity to enter into contracts.
C) Yes,but only because it is a family business.
D) Yes,because she has capacity to do the acts for which she has been retained.
Family Business
A commercial organization in which decision-making is influenced by multiple generations of a family related by blood or marriage.
Minor
A minor is a person who is under the age of legal majority, and thus is considered incapable of certain legal decisions and responsibilities.
- Differentiate between the notion of authority and its various types within an agency relationship.
Learning Objectives
- Differentiate between the notion of authority and its various types within an agency relationship.