Question

Which of the following is true of a person's capacity to be a principal or agent?

A. A principal must have the capacity to do the acts for which the agent has been retained
B. To be an agent, a person must have the ability to make his own contracts, independent of the principal.
C. To be an agent, a person must have the capacity to perform non-delegable obligations for the principal.
D. Any duty that a principal has the capacity to perform can be delegated to an authorized agent.
E. None of the above answers is correct.

Answer 1

a. A principal must have the capacity to do the acts for which the agent has been retained.

Step-by-step explanation:

Of the options provided, the correct statement regarding a person's capacity to be a principal or agent is:

A. A principal must have the capacity to do the acts for which the agent has been retained

This means that a principal must have the ability and legal capacity to perform the actions for which they have hired an agent. The agent acts on behalf of the principal, so the principal must have the capacity to carry out those actions.