An Agent Who Makes a Contract for a Disclosed Principal

question 20

Multiple Choice

An agent who makes a contract for a disclosed principal whose contracts are voidable for lack of contractual capacity:

• A) is never liable to the third party.
• B) can be liable to the third party under certain circumstances.
• C) is liable to the third party only if the agent warrants the principal has capacity.
• D) is ordinarily personally liable to the third party if the principal avoids the contract.

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Definitions:

Countersign

The act of adding a secondary signature to a document to verify or approve its contents, common in legal, financial, and military practices.

Telephone Order

Instructions for patient care given by a healthcare professional over the phone, often requiring subsequent written confirmation.

Medicare Funds

Government funds allocated to Medicare, a federal health insurance program in the United States for people who are 65 or older, certain younger people with disabilities, and people with End-Stage Renal Disease.

Stage 2 Pressure Ulcer

A pressure sore characterized by partial thickness skin loss or blisters, indicating damage to the dermis.