A Principal May Incur Liability

question 34

Multiple Choice

A principal may incur liability

• A) if a third party is induced to enter into a contract by the fraudulent misrepresentation of an agent.
• B) by revealing his or her identity in a situation where an agent negotiated a contract without disclosing his agency.
• C) where an agent reveals his agency in concluding a contract and acts within his authority.
• D) where an agent reveals his agency in concluding a contract and exceeds his authority.
• E) all of the responses are correct.

---

Definitions:

Dangerous to Humans

Referring to substances, actions, or organisms that pose a risk of harm or injury to human beings.

Gradual Exposure

A therapeutic technique involving slowly and progressively introducing a person to a feared object or situation to reduce anxiety.

Unconscious Motivations

Drives and desires that influence an individual's behavior without their conscious awareness.

Irrational Fear

A fear that is intense and persistent, disproportionate to the actual danger posed, often manifesting without an obvious cause.