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Two real estate agents, pressed for time, stopped at the bakery for some muffins that would suffice as lunch. John bought the muffins and gave one to Mary. They both began to eat the muffins as they hurried to the car. When Mary looked at the muffin she had just bitten, she saw that the raisins had little worms in them. John's muffins were the same-with little worms. Based on these facts, which of the following possibilities is true? (Read each independently from the others.)
Compensation
Payment or reward given to someone for services rendered or losses incurred.
Principal Ratifies
Occurs when a principal approves and accepts the actions of an agent that were originally outside the agent's scope of authority.
Expressly Excludes
A contractual term used to specify that certain conditions or provisions are deliberately not covered within an agreement.
Vicarious Liability
Legal responsibility taken by one party for the actions of another, typically in an employer-employee relationship.
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