An Agent Contracted with a Third Party on Behalf of a Principal

question 29

Multiple Choice

An agent contracted with a third party on behalf of a principal, but went beyond both his actual and apparent authority. The third party was never paid. Which of the following indicates the legal position of the third party?

• A) He can successfully sue the principal because the principal is always liable for the actions of his agent.
• B) He can successfully sue the agent for breach of warranty of authority if the principal fails to ratify the contract.
• C) Since the agent had no authority, the third party has no remedy against anyone.
• D) The third party can ratify the deal and force the principal to go through with it.
• E) He can sue the agent for the tort of nuisance.

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Definitions:

Values

Cultural assessments that identify something as right, desirable, and moral.

Extinction

The process through which a species, family, or larger group of organisms permanently disappears from Earth.

Cultural Relativism

The principle that an individual's beliefs and activities should be understood by others in terms of that individual's own culture, avoiding ethnocentric judgments.

Ethnocentrism

The tendency to view one's own culture or ethnic group as superior to others, often leading to judging other cultures by one's own cultural norms and standards.