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.

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