An Undisclosed Principal Will Be Bound by Any Contract the Agent

question 36

True/False

An undisclosed principal will be bound by any contract the agent enters into with actual authority.

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Definitions:

General Power of Attorney

A legal document granting someone authority to act on another person's behalf in a variety of matters.

Legal Documents

Written instruments that formalize agreements, rights, or obligations legally enforceable by law, such as contracts, wills, and deeds.

Specific Purpose

A clear, defined goal or objective intended for a particular project or plan.

Duty of Compensation

The obligation to make payment or restitution to someone for loss, suffering, or injury.