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Simple English definitions for legal terms
equal-dignities rule
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A quick definition of equal-dignities rule:
The equal-dignities rule is a legal principle that says if a contract requires a signature from the person in charge, then their agent can only sign it if they have written permission to do so. This rule is important because it helps prevent fraud and ensures that everyone involved in a contract is aware of who has the authority to sign it.
A more thorough explanation:
The equal-dignities rule is a legal doctrine that applies when one or more parties to a contract act through an agent. It states that an agent can only perform acts that require a writing signed by the principal if the agent's authority is also set forth in a writing.
For example, if a person hires a real estate agent to sell their property, the agent can only sign a contract on behalf of the owner if the owner has given them written authorization to do so. This is because the contract requires a writing signed by the owner, and the agent's authority to sign on their behalf must also be in writing.
The equal-dignities rule is an adjunct to the statute of frauds, which requires certain contracts to be in writing to be enforceable. It helps ensure that all parties involved in a contract are aware of the authority of the agent and that the contract is legally binding.