Asked by
Shifa Mohiuddin
on Nov 21, 2024
Verified
Which of the following is true regarding agency contracts?
A) Agency contracts must clearly define the agent's compensation.
B) A contract is not required to create an agency but if a contract exists, it must meet all requirements prescribed by contract law.
C) A contract is required to create a valid agency
D) An agency contract cannot create an agency agreement longer than two years.
E) An agency contract only needs to be signed by the principal.
Agent's Compensation
The payment or reward given to an agent for services performed as outlined in the agency agreement between the agent and the principal.
Contract Law
The body of law that governs the formation, execution, and enforcement of agreements between parties, ensuring the legality of transactions and obligations.
- Comprehend the procedural and legal requirements for agency agreements, including when they must be in writing.
Verified Answer
ML
Learning Objectives
- Comprehend the procedural and legal requirements for agency agreements, including when they must be in writing.