A Principal Is Contractually Bound to a Third Party If

question 14

True/False

A principal is contractually bound to a third party if the agent acts without any authority but the principal ratifies the contract.

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Definitions:

Service Department Charge Rate

The rate at which internal service departments charge other parts of the same organization for the services rendered.

Accounting Department

The division within a company responsible for managing financial records, ensuring compliance with accounting standards, and producing financial statements.

Service Department Cost

Involves the expenses associated with the departments that do not directly produce goods but provide support or services to other departments within an organization.

ABC Corporation

A hypothetical or generic naming convention used to represent a company in examples or case studies.