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:

Signaling Molecules

Chemicals that are used by cells to communicate with each other, often responsible for transmitting signals from one cell to another across distances.

Modify Behavior

The process of changing an individual's actions or reactions to achieve a desired effect, often through learning or adaptation.

Secreted

Secretion is the process by which substances are produced and discharged from cells or glands, often for a particular function in the body or plant.

Farsightedness

A common vision condition where distant objects are seen more clearly than close ones, also known as hyperopia.