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:

Specific Conclusion

A definitive end or resolution that directly addresses the particular issue or question at hand.

Circular Reasoning

A logical fallacy where the conclusion is supported by premises that assume the conclusion's truth, creating a circle in reasoning.

Logical Fallacy

An error in reasoning that renders an argument invalid or undermines the argument's logical structure.

Either/or Scenario

A situation presenting two exclusive options, where the choice of one negates the possibility of the other.