An Agent Negotiates a Contract with a Third Party,for Which

question 25

Multiple Choice

An agent negotiates a contract with a third party,for which the agent did not have express authority.Which of the following is true?

• A) The principal can never be held liable on the contract because the agent exceeded his authority.
• B) The principal can be liable on the contract only if the agent had implied authority to enter into the contract.
• C) The principal can be liable on the contract only if apparent authority was present.
• D) Either implied or apparent authority might cause the principal to be liable on the contract.

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Definitions:

Interrole Conflict

The tension or disagreement that arises when the expectations of different roles occupied by an individual are incompatible or conflicting.

Intersender Role Conflict

Intersender role conflict occurs when an individual receives conflicting demands from different sources within an organization, causing stress and confusion.

Group Norms

Established standards of behavior shared by members of a group, which guide individual actions and decision-making.

Social Loafing

Occurs when people work less hard in groups than they would individually.