Asked by Daniel Romero on May 14, 2024
Verified
When an agency agreement fails to adhere to the equal dignity rule,the subsequent contracts are typically considered void.
Equal Dignity Rule
A rule requiring that contracts that would normally fall under the statute of frauds and need a writing if negotiated by the principal must be in writing even if negotiated by an agent.
- Recognize the legal implications of an agency relationship and authority types.
Verified Answer
AM
Alise MarkovaMay 17, 2024
Final Answer :
False
Explanation :
When express authority is granted for an agent to enter into a contract that is legally required to be in writing,most states require the grant of authority also to be in writing.This requirement is known as the equal dignity rule.When an agency agreement fails to adhere to the equal dignity rule,the subsequent contracts are typically considered voidable by the principal.This rule is based on the statute of frauds.
Learning Objectives
- Recognize the legal implications of an agency relationship and authority types.