An Agent Who Does Something That They Were Not in Fact

question 71

Multiple Choice

An agent who does something that they were not in fact authorised to do, but had apparent authority to do, will:

• A)have breached the duty to follow the principal's instructions.
• B)not be liable to the principal.
• C)be liable to criminal prosecution.
• D)be liable to the principal and to the third party, if either has suffered damage.

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Definitions:

Involuntary Dissolution

The process by which a court orders the dissolution of a corporation against its will, usually due to fraud or harm.

Annual Franchise Tax

A fee or tax that a business is required to pay annually to remain registered and legally conduct business in a particular jurisdiction.

Legal Status

Refers to the lawful standing of an entity or individual, determining their rights, duties, and liabilities under the law.

Dissolution

The process of legally dissolving a corporation or partnership, involving the distribution of assets to creditors and shareholders, and concluding its affairs.