Where a Third Party Contracts with an Undisclosed Principal Via

question 35

Multiple Choice

Where a third party contracts with an undisclosed principal via an agent, the principal will still be able to enforce the contract with the third party unless:

• A)the agent did not have authority to act for the principal or the agent told the third party that they were acting on their own behalf.
• B)the agent did not act in good faith.
• C)the third party chooses not to proceed with the contract.
• D)the terms of the contract are unfair to the third party.

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Definitions:

Profit

The profit achieved when the revenue generated from a business operation surpasses the expenses, costs, and taxes needed to maintain the operation.

External Effects

Also known as externalities, these are positive or negative consequences of economic activities experienced by unrelated third parties.

Highly Differentiated

Products or services that are distinct and stand out from those of competitors because of features, quality, or design.

Dysfunctional Conflict

Conflict that is detrimental to organizational goals and personal relationships, often escalating tensions without resolution.