An Agent Will Have 'Authority by Estoppel' to Bind the Principal

question 63

Multiple Choice

An agent will have 'authority by estoppel' to bind the principal in circumstances in which the agent:

• A)Does not have actual authority but has apparent authority.
• B)Does not have actual or apparent authority but has behaved in good faith.
• C)Has not behaved in a manner that was unconscionable.
• D)Has implied authority.

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Definitions:

Sinking Funds

Reserves of money set aside by a corporation or government to repay a debt or bond issue at or before maturity.

Bondholder

An investor who owns bonds issued by a corporation or government, lending them money in exchange for periodic interest payments and the return of principal at maturity.

Issuer

An entity that issues or proposes to issue any security, or the entity on whose behalf the securities are issued.

Times-Interest-Earned Ratio

A financial ratio that measures a company's ability to meet its interest payments on outstanding debt.