Statement A: Both parties who are in pari delicto should not be allowed to recover from each other. Statement B: A special power of attorney is an example of a contract of agency.... Statement A: Both parties who are in pari delicto should not be allowed to recover from each other. Statement B: A special power of attorney is an example of a contract of agency. Which of the following is true? Only Statement A is false, Both statements are false, Neither is false, Only Statement B is false.
Understand the Problem
The question tests your knowledge of legal principles, specifically concerning in pari delicto and agency relationships. It requires you to evaluate the truthfulness of Statement A regarding the in pari delicto doctrine and Statement B concerning special powers of attorney. Based on your assessment, you must select the option that correctly describes the accuracy of each statement.
Answer
Neither is false.
The correct answer is 'Neither is false.' Statement A is true because the in pari delicto doctrine dictates that courts should not assist either party in an illegal contract if both are equally at fault. Statement B is also true because a special power of attorney does establish a contract of agency, allowing the appointed agent to act on behalf of the principal within the specific powers granted.
Answer for screen readers
The correct answer is 'Neither is false.' Statement A is true because the in pari delicto doctrine dictates that courts should not assist either party in an illegal contract if both are equally at fault. Statement B is also true because a special power of attorney does establish a contract of agency, allowing the appointed agent to act on behalf of the principal within the specific powers granted.
More Information
The in pari delicto doctrine is a fundamental principle in contract law that prevents a party who is equally at fault in an illegal agreement from seeking legal recourse against the other party. A power of attorney is a legal document that allows a person to designate someone else to act on their behalf.
Tips
Students may confuse in pari delicto with other contract defenses or misunderstand the scope and nature of agency relationships created by powers of attorney.
Sources
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