When an Agent Who Lacks a Principal's Authority Executes a Contract

question 51

Multiple Choice

When an agent who lacks a principal's authority executes a contract with a third party, the contract: ______.

• A) binds the principal but not the agent.
• B) binds both the principal and the agent.
• C) does not bind the principal.
• D) binds the third party only.

---

Definitions:

Value

The perceived benefit or satisfaction that a consumer receives from a product or service in relation to its cost.

Benefits to Costs

Refers to evaluating the advantages and disadvantages or gains and expenses associated with a decision, project, or purchase.

Needs and Wants

Fundamental human requirements and desires that drive consumption behavior, where needs are essential for survival and wants are additional desires.

Product Improvement

The process of making meaningful changes to a product to increase its usability, functionality or performance.