The Acts of the Agent Obligate the Principal to Third

question 15

True/False

The acts of the agent obligate the principal to third persons and give the principal rights against third persons.

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Definitions:

Notes Payable

Written agreements in which one party agrees to pay another party a certain sum of money at a future date or on demand.

Debit

An accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet.

Capital

Financial assets or the resources that businesses use to fund their operations and growth, including cash, properties, and equipment.

Equipment Purchase

The acquisition of physical assets, such as machinery or tools, used in the operation of a business.