If an Agent Claims to Have Authority but in Fact

question 236

Multiple Choice

If an agent claims to have authority but in fact has none, the principal is:

• A) not responsible for the agent's dealings with third parties who have no reason to think the agent has authority
• B) responsible for the agent's dealings with third parties who have no reason to think the agent has authority
• C) responsible for up to 50% of the monetary value of any contracts entered into by third parties and the agent
• D) responsible for up to 25% of the monetary value of any contracts entered into by third parties and the agent
• E) none of the other choices are correct

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Definitions:

Fraction

A numerical quantity that is not a whole number, represented by two numbers divided by a line, indicating parts of a whole.

Exponentiation

mathematical operation involving two numbers, where one number is raised to the power of another.

Addition

A mathematical operation that represents the total sum of two or more numbers.

Multiplication

A mathematical operation that calculates the total of one number added to itself a certain number of times based on another number.