Which element is NOT required to establish an agency relationship according to the Johnson/Priceline rule?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $24.99Unlock all

Study for the Legal Cases on Agency, Fiduciary Duty, and Corporate Governance Test. Use flashcards and multiple choice questions, each with hints and explanations. Prepare effectively for your exam!

Multiple Choice

Which element is NOT required to establish an agency relationship according to the Johnson/Priceline rule?

Explanation:
Agency is formed when the principal manifests assent to appoint an agent to act on the principal’s behalf, the agent consents to act, and the principal has the right to control the undertaking. The requirement to compensate the agent does not enter into the formation of the relationship—an agent can be unpaid and still create an agency if the other elements are present. The paid-for element is not necessary for agency; even a gratuitous arrangement can be an agency as long as the principal has the right to control and the agent consents to act.

Agency is formed when the principal manifests assent to appoint an agent to act on the principal’s behalf, the agent consents to act, and the principal has the right to control the undertaking. The requirement to compensate the agent does not enter into the formation of the relationship—an agent can be unpaid and still create an agency if the other elements are present. The paid-for element is not necessary for agency; even a gratuitous arrangement can be an agency as long as the principal has the right to control and the agent consents to act.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy