Which of the Following Is True Regarding Criteria Needed for Creation

question 46

Multiple Choice

Which of the following is true regarding criteria needed for creation of the agency relationship?

• A) The agency must be created for a lawful purpose, and the person hiring an agent must have contractual capacity.
• B) The agency must be created for an equitable as well as a lawful purpose, and the person hiring an agent must have contractual capacity.
• C) The agency must be created for a business and lawful purpose, and the person hiring an agent must have contractual capacity.
• D) The agency must be created for a lawful purpose; and, although there is no requirement that the person hiring an agent have capacity, the person acting as an agent must have contractual capacity.
• E) The agency must be created for an equitable as well as a lawful purpose; and, although there is no requirement that the person hiring an agent have capacity, the person acting as an agent must have contractual capacity.

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Definitions:

Caustic Substance

A chemical material capable of burning, corroding, or destroying living tissues.

Duty of Care

A legal obligation requiring individuals to exercise a reasonable level of care and caution to avoid harm to others.

Negligence

Failure to take reasonable care to avoid causing injury or loss to another person, resulting in legal liability.

Zoned "Commercial"

A designation given to an area by a local government, indicating that the land is intended for use by businesses to conduct retail, wholesale, service, or other types of commercial activities.