Question
Legal Studies Question on Laws of Contract
Which of the following statement is wrong regarding "agency" according to Indian Contract Act, 1872?
A
Principal should be competent to contract
B
Consideration is necessary to create an agency
C
Agency may be created by ratification
D
The authority of agent may be expressed or implied
Answer
Consideration is necessary to create an agency
Explanation
Solution
The correct option is (B): Consideration is necessary to create an agency.