Which of the Following Is True Regarding a Situation Where

question 31

Multiple Choice

Which of the following is true regarding a situation where an agent exceeds the scope of his or her authority in entering into a contract?

• A) The agent would never be held liable to the third party.
• B) The agent would always be held liable to the third party.
• C) The principal would always be held liable to the third party.
• D) The principal would never be held liable to the third party.
• E) The principal is not liable on the contract unless the principal ratifies it.