When a Principal Tells an Agent Not to Enter into a Contract

question 31

Multiple Choice

When a principal tells an agent not to enter into a contract or behave in a particular manner and the agent does so regardless, the principal will still be liable for the legal consequences of the agent's act provided that, among other things:

• A)the principal has done something which has the effect of holding the agent out as having the necessary authority.
• B)the third party has suffered detriment and damages are an inappropriate remedy.
• C)the third party knew that the agent did not have actual authority but thought on reasonable grounds that the agent had apparent authority.
• D)the principal ought to have foreseen that the agent would do the act or enter into the contract.

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Definitions:

Postpartum Depression

A severe, lasting form of depression that some women experience after giving birth, affecting their emotional and physical wellbeing.

Postpartum Blues

A common, temporary emotional state of crying, sadness, and mood swings experienced by new mothers shortly after childbirth.

Depression

A mental health disorder characterized by persistent sadness, loss of interest in activities, and a range of emotional and physical problems.

Perinatal Onset

Refers to the occurrence or development of a condition or disease during the perinatal period, which spans from the 22nd week of gestation to the 7th day after birth.