Lorna Is Given Papers to Sign by a Catering Company

question 50

True/False

Lorna is given papers to sign by a catering company for the food,service,and decorations at a wedding.Underneath the invoices are a carbon and a contract of sale for a portion of the failing catering business.As Lorna signs the papers,her signature is applied to the sales contract.This is a void contract because it was entered by fraud in the execution.

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Definitions:

Principals

In a commercial context, the parties who enter into a contract or agreement, authorizing agents to act on their behalf in transactions.

Contracts

Legally binding agreements between two or more parties that create mutual obligations enforceable by law.

Actual Authority

The specific power given to an agent by a principal, derived from their agreement and can be express or implied based on their actions.

Apparent Authority

The perception by a third party that an agent has the authority to act on behalf of a principal, even if such authority has not been explicitly or implicitly granted.