Which of the Following Is Correct with Respect to the Ratification

question 162

Multiple Choice

Which of the following is correct with respect to the ratification of an agent's contracts?

• A) A principal can ratify a contract where the agent has gone beyond both his actual and apparent authority.
• B) A principal can only ratify an agreement entered into by an agent if his name has not been used.
• C) When a contract entered into by an agent is ratified by a principal, it commences at the time the principal ratifies the contract.
• D) The agent can set a time limit within which the ratification must take place.
• E) A contract can only be ratified if the principal was not able to enter into the contract himself at the time of ratification.

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Definitions:

Willingness To Pay

The greatest sum a consumer is ready to spend for a good or service, showcasing the importance they assign to it.

External Cost

Costs that are not borne by the producers or users of a good or service, but rather by society or third parties, often not reflected in market prices.

Social Optimum

The most efficient allocation of resources that maximizes the overall benefit to society.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that suppliers are willing to sell.