All the following statements concerning general rules of agency law are correct EXCEPT

All the following statements concerning general rules of agency law are correct EXCEPT

• A. A person must have contractual capacity to be an agent.
• B. There must be a manifestation of consent to the agency by the agent.
• C. The agent is subject to the principal's control.
• D. A corporation may be a principal and appoint an agent.

Answer: (A)

Capacity to contract isn’t required for someone to act as an agent. An agent can represent another person even if the agent themselves lacks contractual capacity, because the binding agreement is between the principal and the third party, not the agent. What matters is that the agent consents to act on behalf of the principal and that the principal controls the agent’s activities. As long as there is authority and the agent acts within that authority, the principal is bound by the agent’s actions. The other statements reflect common features of agency: there must be some manifestation of the agent’s assent to act for the principal, the agent is under the principal’s control, and a corporation can be a principal and appoint an agent.

Capacity to contract isn’t required for someone to act as an agent. An agent can represent another person even if the agent themselves lacks contractual capacity, because the binding agreement is between the principal and the third party, not the agent. What matters is that the agent consents to act on behalf of the principal and that the principal controls the agent’s activities. As long as there is authority and the agent acts within that authority, the principal is bound by the agent’s actions. The other statements reflect common features of agency: there must be some manifestation of the agent’s assent to act for the principal, the agent is under the principal’s control, and a corporation can be a principal and appoint an agent.