Which of the Following Is Correct with Regard to the Capacity

question 78

Multiple Choice

Which of the following is correct with regard to the capacity of an agent?

• A) The incapacity of the agent disqualifies him from making a contract that is binding on his principal.
• B) No mental capacity is necessary for an agent.
• C) If an incompetent person who is not under guardianship appoints an agent, contracts made by that agent are voidable.
• D) A young child or a person under guardianship has the capacity to act as an agent.

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Definitions:

Supply Curve

A graph showing the relationship between the quantity of a good supplied and its price, typically upward sloping.

Movement

A change or development in a particular direction, often referred to in contexts ranging from physical relocation to shifts in opinions or trends.

Supply Curve

represents the relationship between the price of a good and the quantity of that good suppliers are willing to produce and sell, typically upward sloping because higher prices incentivize more production.

Shift

A change in demand or supply where the entire curve moves either right (increase) or left (decrease), signifying changes in market conditions.