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Source Agency Formation Agency Formation Matched to this deck.

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A 17-year-old employee was asked by a corporation's purchasing director to pick up a prepaid order from a warehouse and sign the receipt for the corporation. The warehouse later argued no agency could exist because the employee was a minor.
Which statement is most accurate?

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A principal's capacity is irrelevant to agency formation. No person under 21 can ever serve as an agent. A person may serve as an agent even if the person would lack capacity to contract on the person's own behalf, but the principal still must have capacity to appoint the agent. Only licensed attorneys may serve as agents for business contracts.

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