Asked by Laura Derhamer on Jul 06, 2024

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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.

Contractual Capacity

Contractual capacity is the legal ability of a person or entity to enter into a contract, with sufficient understanding and agreement to the terms.

Agency Agreement

A legal contract creating a fiduciary relationship where the agent is authorized to perform actions for the principal.

Legally Enter

The act of gaining access or entrance to a place or agreement under the terms and conditions permitted by law.

  • Gain insight into the dynamics of agency relationships and the duties of principals and agents.
  • Comprehend the importance of written agreements in clarifying the agency relationship and duties involved.
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kasey blakemanJul 08, 2024
Final Answer :
C
Explanation :
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.