Asked by Emily Fritsch on May 07, 2024
Verified
Which of the following statements is false? Agency agreements
A) are agreements of utmost good faith on the part of the agent.
B) which are by express agreement need to be in writing to be valid.
C) include, by definition, Powers of Attorney.
D) entitle a third party to expect that notice to the agent constitutes notice to the principal.
Powers of Attorney
A legal document that grants one individual (the agent) the authority to act on behalf of another (the principal) in legal or financial matters.
Utmost Good Faith
A principle requiring all parties to a contract, especially in insurance, to act honestly and not mislead or withhold critical information from each other.
Express Agreement
A contract in which the terms are stated openly and explicitly, and agreed upon by all parties involved.
- Grasp the significance of utmost good faith in agency agreements and the consequences of breach.
Verified Answer
DC
Diana CarreiroMay 08, 2024
Final Answer :
B
Explanation :
Agency agreements do not necessarily need to be in writing to be valid unless they fall under specific statutes that require written agreements, such as the Statute of Frauds. Many agency agreements can be and are formed orally or even implied by conduct.
Learning Objectives
- Grasp the significance of utmost good faith in agency agreements and the consequences of breach.