An Agency

question 13

Multiple Choice

An agency:

• A) is a consensual relationship that the principal and agent may form by contract or agreement.
• B) must be created with consideration.
• C) requires a formal writing,called a power of attorney.
• D) which is voidable because of the incapacity of an agent results in only voidable contracts with third parties.

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Definitions:

Perfect Information

A scenario in which all participants have access to all relevant information for decision-making.

Price Changes

Alterations in the selling price of goods or services over time due to various factors like supply and demand, inflation, or production costs.

Consumers

Consumers are individuals or groups that use goods and services generated within the economy to satisfy their personal needs and desires.

Jointly Owned

Pertains to a property or asset that is owned by two or more parties, with rights and responsibilities shared among them.