Question

ntity. D Question 8 2 pts Because Sarah is a minor, she lacks capacity to enter into contracts. Sarah's mother, Beth, wants to make Sarah her agent, including having Sarah enter into contracts on Beth's behalf. Sarah enters into a contract with a third party on Beth's behalf and Beth later claims that she is not bound by the contract because Sarah lacked capacity to enter into it. Is Beth bound by the contract? No, because Sarah, as a minor, lacked capacity to enter into the contract. Yes, if Beth was a disclosed principal. No, unless Beth ratified the contract. Yes, because Beth had capacity to enter into contracts. « Previous Next → No new data to save. Last checked at 3:00pm Submit Qui

Answer 1

Beth is Bound by the Contract because for agent , It is not necessarly to be a Major which means a Minor can also act an agent and the Principal would be liable for work done by the agent if the agent has disclosed the name of principal while entering into the contract with third party.

Correct answer is option 2.