When a Principal Tells an Agent Not to Enter into a Contract

question 59

Multiple Choice

When a principal tells an agent not to enter into a contract or behave in a particular manner and the agent does so regardless, the principal will still be liable for the legal consequences of the agent's act provided that, among other things:

• A)The principal has done something which has the effect of holding the agent out as having the necessary authority.
• B)The third party has suffered detriment and damages are an inappropriate remedy.
• C)The third party knew that the agent did not have actual authority but thought on reasonable grounds that the agent had apparent authority.
• D)The principal ought to have foreseen that the agent would do the act or enter into the contract.

---

Definitions:

DHCP

Dynamic Host Configuration Protocol, a network management protocol used to automate the assignment of IP addresses.

Digital Signals

Information transmitted as a sequence of binary values, representing a discrete and non-continuous signal.

Analog Signals

Continuous signals that vary in time and represent variations in some quantity, such as temperature or speed, in contrast to digital signals that represent information in binary form.

Learning Management System (LMS)

An online platform designed to deliver, track, and manage educational courses and training programs.