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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