What is the liability of a minor acting as an agent?

Prepare for the CA Foundation Business Law Exam with our comprehensive quiz. Utilize flashcards and multiple-choice questions, each complete with hints and explanations. Ace your exam confidently!

In the context of agency law, a minor typically cannot be held fully liable for their actions as an agent due to their status as a minor. This is rooted in the principle that minors lack the legal capacity to enter into binding contracts. Therefore, if a minor acts as an agent for another party, they can do so without incurring personal liability for the contracts they enter into on behalf of their principal.

The rationale behind this principle is to protect minors from being bound by obligations that they may not fully understand or appreciate. However, while they may perform certain acts as agents, their lack of liability means that the principal remains responsible for the transactions. This safety net allows minors to engage in some contractual activities without being held accountable for commitments they are not legally empowered to make on their own.

Other options imply either total liability, an inability to act, or a requirement for supervision, all of which do not align with the basic tenets of agency law as it pertains specifically to minors.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy