Question

Because she is a minor, sarah cannot enter contracts on her own behalf even though she is perfectly competent. her mother wishes to make sarah an agent of the family business, and sarah will be responsible for entering into contracts as an agent. can sarah act as an agent of the company?

A. no, because she is a minor
B. yes, because she has capacity to do the acts for which she has been retained
C. no, because she does not have the capacity to enter into contracts
D. yes, but only because it is a family business

Answer 1

Sarah can act as an agent for the family business since the capacity of the business allows her to enter into contracts as an agent, despite her being a minor. Therefore, the correct response would be B. yes, because she has capacity to do the acts for which she has been retained

Step-by-step explanation:

Yes, Sarah can act as an agent for the family business despite being a minor. This is possible because, while minors generally lack the capacity to enter into contracts on their own behalf, they can act as agents for someone else, such as a family business, where the principal (the business or the parents) is competent to consent and be bound by the contracts. The principal's capacity is imputed to the agent for the purpose of the agency relationship. In this case, Sarah's mother, who has the authority to enter into contracts for the business, can authorize Sarah to act as an agent. Therefore, the correct response would be yes, because she has capacity to do the acts for which she has been retained, recognizing that the capacity in this scenario relates to the family business, not Sarah's personal ability to contract.