Using an Agent Provides Benefits to a Principal, but Can

question 6

True/False

Using an agent provides benefits to a principal, but can also result in liability imposed on the principal.

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Definitions:

Valid Consideration

Valid Consideration is a necessary component of a legally binding contract, involving something of value exchanged between the parties involved.

Adequate Consideration

Something of value that is deemed by law to be sufficient grounds for enforcing a party's obligation under a contract.

Legal Detriment

The loss or disadvantage that a party agrees to suffer within a contractual agreement which gives value to the contract.

Doctrine of Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to another if the latter has relied on that promise to their detriment.