An Agent Making a Proper Contract with a Third Person

question 28

Multiple Choice

An agent making a proper contract with a third person on behalf of a disclosed principal:

• A) has no personal liability on the contract.
• B) is liable only to the principal on the contract.
• C) is liable only to the third party on the contract.
• D) is personally liable to both the principal and the third person on the contract.

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Definitions:

Comparative Advantage

The ability of a country or entity to produce a good or offer a service at a lower opportunity cost than competitors, facilitating specialized trade benefits.

Production Data

Information and statistics related to the amount and types of goods and services produced within a particular period.

Quotas and Tariffs

Quotas and tariffs are trade policies where quotas limit the quantity of goods that can be imported, and tariffs are taxes imposed on imported goods to make them more expensive.

Foreign Governments

The governing bodies or authoritative administrations of countries other than one's own.