An Agent Makes a Contract with a Third Party on Behalf

question 132

True/False

An agent makes a contract with a third party on behalf of the disclosed principal. The principal then breaches the contract. The third party may sue the agent to recover damages.

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Definitions:

Dividend Growth

The rate at which a company's dividend payments to shareholders increase over time, indicating the company's growth and stability.

Annual Dividend

A yearly payment made by a corporation to its shareholders, usually derived from the company's profits.

Rate of Return

The profit or shortfall on an investment over a predetermined period, expressed as a proportion of the investment's initial outlay.

Dividend Increase

An action by a corporation to raise the amount of dividends paid to its shareholders.