Failure to Perform a Moral Obligation Usually Creates Legal Liability

question 54

True/False

Failure to perform a moral obligation usually creates legal liability.

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Definitions:

Unauthorized Contracts

Unauthorized contracts refer to agreements made by individuals who lack the legal authority or capacity to bind themselves or another party to contractual obligations.

Apparent Authority

A situation where a reasonable person would understand that an agent had authority to act, even if the agent did not have actual authority.

Personal Liability

The legal obligation of an individual to bear the cost of damages or losses themselves, rather than the liability being absorbed by an entity or insurance.

Agency Relationship

A fiduciary relationship in which one party (the agent) agrees to act on behalf of another party (the principal).