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Equal Dignities Rule

DEFINITION

Equal dignities rule: Term that describes the legal requirement of an agent to perform all acts required by the principal in writing.

EXPLANATION

A lawful objective and accountability are a few main components of a valid contract. The main component of accountability is for the agent to adhere to the equal dignities rule. The equal dignities rule is the term that describes the legal requirement of an agent to perform all acts required by the principal in writing. Contracts not in writing can be considered void if the court so decides to do.

The rule requires the real estate agent representing the principal to do all the things they promised the principal in writing. These acts are not those that were verbally expressed, although agents have a duty to perform those well. The acts they perform must follow the law and be approved by the buyer or seller whom is the principal. The Equal Dignities Rule works in conjunction with existing laws found in the statute of frauds.

Who the Equal Dignities Applies to and Meeting the Demands of the Law

The rule also applies to party’s acting as a power of attorney on behalf of the principal. The acts that are required to be in writing include anything with a sum of $500 or more dollars and acts that take one or more years to carry out. Anything related to real estate must be in writing because clearly real estate related transaction surpasses the minimum $500 threshold.

Creating a document that meets the legal requirement for the equal dignities rule requires everything to be in writing. In many situations it is advised to work with an attorney, especially if the matter being discussed is complex and difficult to understand.

The Equal Dignities Rule also implies that any contract that is required to be in writing subsequently requires an agent’s authority to be in writing to meet the legal requirements of the Statute of Frauds.

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