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:

Transmitting Substance

A chemical messenger that transmits signals across a chemical synapse, from one neuron (nerve cell) to another 'target' neuron, muscle cell, or gland cell.

Sound Waves

Vibrations that travel through the air or another medium and can be heard when they reach a person's or animal's ear.

Timbre

The quality of a musical note, sound, or tone that distinguishes different types of sound production, such as voices or musical instruments.

Pure Tones

Sounds with a sinusoidal waveform, meaning they have a single frequency and are perceived as a single pitch.