An Agent Making a Proper Contract with a Third Person

question 28

Multiple Choice

An agent making a proper contract with a third person on behalf of a disclosed principal:

• A) has no personal liability on the contract.
• B) is liable only to the principal on the contract.
• C) is liable only to the third party on the contract.
• D) is personally liable to both the principal and the third person on the contract.

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Definitions:

Social Cognitive Theory

A framework for understanding, predicting, and changing human behavior, emphasizing the role of observational learning, self-efficacy, and social influences.

Observational Learning

The process of acquiring knowledge and skills by observing the actions of others and the consequences of those actions.

Healthy Meal

A meal that provides essential nutrients, adheres to dietary guidelines, and promotes overall health.

Attitudes

Pertains to individuals' settled ways of thinking or feeling about something, often reflected in their behavior.