What Can Be Used to Explain Irrational Behaviour

question 84

Essay

What can be used to explain irrational behaviour?

Recognize the implications of undisclosed, partially disclosed, and disclosed principals in contractual agreements.

Distinguish between actual, implied, and apparent authority in the context of agency law.

Identify the legal consequences for agents acting outside the scope of their authority.

Analyze the tort liability of principals for the acts of their agents, including negligence, respondeat superior, and unauthorized acts.

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Definitions:

Sale of Receivables

The process of selling outstanding invoices to a third party in order to receive immediate payment.

Allowance for Doubtful Accounts

An accounting estimate for the portion of accounts receivable that may not be collectible.

Bad Debt Expense

An expense account reflecting estimated uncollectible accounts receivable due to credit sales that are unlikely to be recovered.

Accounts Receivable

Funds owed to a business by its customers for goods or services delivered or used but not yet paid for.