If an Agent Appointed Under a Power of Attorney Acts

question 20

Multiple Choice

If an agent appointed under a power of attorney acts on behalf of a principal after the principal dies but before the agent has been informed of the death, power of attorney legislation in each state provides that:

• A)the agent's act will not bind the principal's estate and any contracts entered into by the agent on the principal's behalf are void.
• B)the agent will be personally liable for any contracts entered into.
• C)the agent's actions will bind the estate of the principal.
• D)any contracts entered into on behalf of the principal by the agent are voidable and may be terminated at the discretion of the executors of the principal's estate.

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Definitions:

Trade Discounts

Discounts from the list prices in published catalogs or special discounts offered to certain classes of buyers.

List Prices

The pre-discount price at which goods and services are listed to be sold to customers.

FOB Destination

This term refers to a shipping agreement where the seller bears the shipping costs and remains responsible for the goods until they are delivered to the buyer's location.

Purchase Discount

A deduction that a buyer receives on the invoice price of a purchase if the payment is made within a specified period.