In Which of the Following Situations Is the Principal -

question 36

Multiple Choice

In which of the following situations is the principal - and not the agent - liable to a third party for breach of contact?

• A) signature by partially disclosed principal
• B) signature by undisclosed principal
• C) ratification by disclosed principal
• D) ratification by undisclosed principal

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Definitions:

Bank

A financial institution licensed to receive deposits, offer loans, and provide other financial services to its customers.

Collection Float

The time period between when a payment is made by a customer and when the funds become available to the recipient.

Cheques

Financial instruments that instruct a bank to pay a specific amount of money from a person's account to another individual or entity.

Processed

Refers to items or data that have been altered, refined, analyzed, or prepared through a series of actions for a specific use or purpose.