If a Third Party Learns That an Agent Was Acting

question 56

Multiple Choice

If a third party learns that an agent was acting for an undisclosed principal, the third party has the right to:

• A)Enforce the contract against the principal and the agent jointly.
• B)Enforce the contract against the principal only.
• C)Enforce the contract against the agent only.
• D)Enforce the contract against either the principal or the agent but not both.

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Definitions:

Social Security Withholding

A mandatory process where employers deduct part of an employee's salary to contribute towards the United States Social Security program, aimed at providing benefits for retirees, disabled workers, and survivors.

Federal Income Tax Withholding

The process by which employers withhold a portion of employees' wages to pay directly to the government as part of the employees' federal income tax obligations.

Withholding Allowance

A deduction that employees can claim to reduce the amount of federal income tax withheld from their paycheck.

Federal Income Tax

Tax levied by the national government on an individual's or corporation's annual income.