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:

Rent

Payment made by a tenant, often monthly, to a landlord in exchange for the use of land, a building, or other property.

Income Forms

Various ways through which individuals or entities can receive money, such as wages, salaries, dividends, interest, and rents.

Aggregate Stock

The total shares or equity held by shareholders in a corporation or the overall supply of goods or commodities available in a market.

Industrial Accident

An unexpected and unplanned event in an industrial setting resulting in injury, illness, or damage.