Asked by Kylie Burchett on May 01, 2024
Verified
Grandpa has a stroke and becomes mentally incapacitated.Discuss the legal status of any agency relationships that he may have granted and how Grandpa should have planned in advance for this possibility.
Mentally Incapacitated
A condition in which a person is unable to make rational decisions or manage their own affairs due to mental deficits or illness.
Agency Relationships
A legal arrangement in which one party (the agent) agrees to act on behalf of another (the principal) in dealings with third parties.
- Recognize and differentiate among various agency relationship categories and the conditions that may modify these relationships.
- Examine the judicial outcomes and solutions accessible when duties by agents are breached or when norms of agency are not adhered to.
Verified Answer
SB
Sevina BravoMay 02, 2024
Final Answer :
Insanity or mental incapacity generally terminates any agency relationship.However,if the third party has no knowledge of the insanity and the principal has not been legally declared insane,the agent may bind the principal.The law provides for a "durable power of attorney" who has the power to preserve the authority of an agent should the principal become incapacitated.Grandpa should have made provisions for adopting this measure.
Learning Objectives
- Recognize and differentiate among various agency relationship categories and the conditions that may modify these relationships.
- Examine the judicial outcomes and solutions accessible when duties by agents are breached or when norms of agency are not adhered to.