Asked by Vivian Ramirez on Jul 14, 2024
Verified
What happens if the principal is completely insane at the time of the agency's formation,and what happens if the principal is sane at the time of agency formation,but loses sanity some time later?
Insanity
A mental disorder of such a severe nature that a person cannot distinguish fantasy from reality, conduct their affairs due to psychosis, or is subject to uncontrollable impulsive behavior.
Agency Formation
The legal process and principles involved in creating an agency relationship, whereby one party (the agent) is authorized to act on behalf of another (the principal).
- Scrutinize the consequences of external conditions such as bankruptcy, wars, or incapacitation on the discontinuation of agency connections.
Verified Answer
SX
Siyabonga XimbaJul 18, 2024
Final Answer :
In case the principal lacks capacity at the time of agency formation,the agency is voidable at the principal's option.In the second case where the principal is declared incompetent after forming an agency,the agency is terminated by operation of law.
Learning Objectives
- Scrutinize the consequences of external conditions such as bankruptcy, wars, or incapacitation on the discontinuation of agency connections.