Alwin Signed Up Twig as a Talented Bareback Stunt Rider

question 15

Multiple Choice

Alwin signed up Twig as a talented bareback stunt rider. He was thinking his Uncle would hire her for his circus yet he had no direct authorisation to be an agent for his Uncle. Is this contract enforceable by Alwin's Uncle?

• A) Yes, if Alvin takes all responsibility for Twig's performance on the contract.
• B) Yes, if Twig confirms the contract directly with Alwin's Uncle.
• C) No, since this involves an undisclosed principal.
• D) Yes, but only if there is ratification within a reasonable time.
• E) No, since agent- principal relationships must be established before the contract is formed.

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Definitions:

Processing Errors

Mistakes that occur during the processing of data, transactions, or operational tasks, which can lead to inaccurate results or outputs.

Regular Audits

Periodic and systematic examinations of financial records and operations to ensure accuracy, compliance, and fairness.

Separation of Duties

A key internal control that involves dividing responsibilities among different people to reduce the risk of error or fraud.

Fraud

Dishonest or illegal trickery used to achieve financial or personal advantages.