To establish an agency relationship: there must be a written contract between th
ID: 338896 • Letter: T
Question
To establish an agency relationship:
there must be a written contract between the parties
all of the other specific choices
the principal must file an agency charter with the appropriate state agency
none of the other choices
the procedure in state statutes must be followed
a.there must be a written contract between the parties
b.all of the other specific choices
c.the principal must file an agency charter with the appropriate state agency
d.none of the other choices
e.the procedure in state statutes must be followed
Explanation / Answer
d.
none of the other choices
Neither a written contract between the parties is an essential nor filing an agency charter with the appropriate state agency. In fact, there are not even any formal procedure in State statute that necessarily needs to be followed. Simply showing an interest towards the other party to act on the other party’s behalf, is essential, to form an agency relationship and thereby, being liable to the third-parties for all the actions as an agent as well, is all that is required.
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