Question

Which of the following types of agency relationships would have to be evidenced by a record to be valid? a. A power of attorney to close on a land transaction. b. A power of attorney to close on the sale of a golf cart for $4,000. c. A power of attorney to sign a six-month lease. d. All of the above must be evidenced by a record for the agent to have authority.

Answer 1

Answer:

Option d. All of the above must be evidenced by a record for the agent to have authority

Explanation:

A power of attorney is a written authorization to represent or act on another's behalf in private affairs, business, or some other legal matter. The person authorizing is the principal while the person authorized to act is the agent or the attorney-in-fact. An agency relationship is a relationship where the principal allows an agent to act on his or her behalf.

Since all of the above are agency contracts, they must be evidenced by a record to be valid. There must be a legally binding document between the principal and the agent for the relationship to be valid.