Nancy, a sixteen-year-old entrepreneur, appoints her friend Josh, who is twenty, to be her agent. She asks Josh to sign a contract with a supplier for several cases of frosting for her cupcake business. Josh contacts the supplier and notifies him of his agency for Nancy. After assuring the supplier that both he and Nancy are adults, Josh signs a contract promising to pay $200. After the first shipment of frosting goes out, Nancy loses interest in the business and disavows the contract.

Is Josh personally liable for the $200?

• No, because an agent is almost never liable for contracts signed on behalf of a principal.
• Yes, because Josh was acting in a personal capacity.
• Yes, because Josh warranted to the seller that Nancy was of legal age to form a binding contract.
• No, because Nancy is a minor and lacks capacity, and therefore may disavow a contract without liability.

Marissa, a principal, hires a new fifth grade teacher for the upcoming school year.

Which type of agent is the new teacher?

• Collection agent
• General agent
• Employee
• Special agent