If an Agent Makes a Contract with a Third Party

question 19

Multiple Choice

If an agent makes a contract with a third party that expressly excludes the principal from the contract, which statement effectively describes the liability of the principal?

• A) The principal is liable on the contract because it is unconscionable to exclude a principal from a contract.
• B) The principal is liable on the contract only if the principal is an unidentified principal.
• C) The principal is liable on the contract only if the principal is a partially disclosed principal.
• D) The principal is liable on the contract unless the principal gave the agent authority in writing to make the agreement with the third party.
• E) The principal is not liable on the contract.

Identify the distinctions between ordinary income and capital gains.

Understand the rules for carryover of capital losses and how they affect future taxable income.

Understand the principles of situational leadership.

Identify different leadership styles and their appropriate application.

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Definitions:

Conclusion

The statement that logically follows from the premises in an argument.

Division

A mathematical operation where a number (the dividend) is divided by another number (the divisor) to produce a quotient.

Dictatorship

A form of government in which power is concentrated in the hands of a single leader or a small group, often without democratic consent.

Composition

The act of forming something by combining parts or elements, or the arrangement and structure of parts in a work of art or piece of writing.