Questions: Question 14 5 pts 14. Kady, an agent for Lebron, enters into a contract on Lebron's behalf with Madge that must be in writing to be enforceable under the Statute of Frauds. Kady's authority to enter into this contract is not in writing. Under the equal dignity rule, this contract is a. enforceable. b. void. c. voidable at Lebron's option. d. voidable at Madge's option.

Question 14
5 pts
14. Kady, an agent for Lebron, enters into a contract on Lebron's behalf with Madge that must be in writing to be enforceable under the Statute of Frauds. Kady's authority to enter into this contract is not in writing. Under the equal dignity rule, this contract is

a. enforceable.
b. void.

c. voidable at Lebron's option.

d. voidable at Madge's option.
Transcript text: Question 14 5 pts 14. Kady, an agent for Lebron, enters into a contract on Lebron's behalf with Madge that must be in writing to be enforceable under the Statute of Frauds. Kady's authority to enter into this contract is not in writing. Under the equal dignity rule, this contract is a. enforceable. b. void. c. voidable at Lebron's option. d. voidable at Madge's option.
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Solution

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Answer

The answer is c. voidable at Lebron's option.

Explanation
Option a: enforceable

Under the equal dignity rule, if a contract must be in writing to be enforceable, then the agent's authority to enter into that contract must also be in writing. Since Kady's authority is not in writing, the contract is not automatically enforceable.

Option b: void

The contract is not void because it was entered into by an agent who had the authority to act on behalf of Lebron, even though that authority was not in writing. The lack of written authority does not make the contract void.

Option c: voidable at Lebron's option

The equal dignity rule allows the principal, in this case, Lebron, to void the contract if the agent's authority was not in writing. Therefore, the contract is voidable at Lebron's option.

Option d: voidable at Madge's option

The contract is not voidable at Madge's option because the issue of the agent's authority being in writing pertains to the principal's rights, not the third party's. Madge cannot void the contract based on the lack of written authority.

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