Without Ted's Knowledge, Phil, Who Frequently Purchased Lumber on Ted's

question 53

True/False

Without Ted's knowledge, Phil, who frequently purchased lumber on Ted's behalf, purchased a large quantity of plywood from Chris as agent for Ted. Phil later advised Ted of the purchase. If Ted had died, Phil would be liable to Chris on the basis of Phil's implied warranty that he had authority to negotiate the contract on behalf of a principal that existed.

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Definitions:

Adjusted From

A term used to indicate the process of making modifications or changes to financial or other data for the purpose of providing a clearer picture of a situation or condition.

Significant Influence

The ability of a shareholder or an entity to shape the financial and operating policies of another company without having control over it.

Cash Dividend

A distribution of a portion of a company's earnings, decided by the board of directors, paid to a class of its shareholders in the form of cash.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenues, indicating the company's financial performance over a specific period.