In General, an Undisclosed Principal and the Third Party to a Contract

question 8

True/False

In general, an undisclosed principal and the third party to a contract are contractually bound if the agent acts within the scope of his actual authority in making the contract.

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Definitions:

Overstock Quantity

Excess inventory beyond what is normally sold, leading to surplus stock that requires additional storage or markdowns for clearance.

Optimal Quantity

The most efficient, cost-effective or beneficial amount or number of something for a specific purpose or condition.

Replenishment Lead Time

The time interval between placing an order and receiving the goods, critical for inventory management.

Supplier Selection

The process by which firms identify, evaluate, and contract with suppliers.