In Certain Cases, a Third Party Can Hold a Principal

question 70

Multiple Choice

In certain cases, a third party can hold a principal to a contract even though the agent acted outside the authorization given him by his principal and even though his principal elected not to ratify the contract made by the agent. The third party can enforce the contract because of

• A) the reasonable agent theory.
• B) agency by express agreement.
• C) the failure of the principal to register the agency agreement.
• D) the agent's apparent authority.
• E) fiduciary duty.

Determine the factors that lead to changes in industry size in the long run including economic profits and losses.

Understand the significance of economic profits and normal profits in the decision-making process of firms in purely competitive markets.

Describe the relationship between market demand, economic profits/losses, and industry adjustments in the long run.

Analyze the impact of consumer demand on purely competitive industries and the resultant equilibrium.

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Definitions:

Enforceable

Capable of being imposed or applied, especially in legal contexts.

Procedurally Unconscionable Contract

A contract that is deemed unfair or unjust due to the process in which it was made, often involving lack of negotiation or imbalance in bargaining power.

Adhesion Contract

A contract created by a party to an agreement that is presented to the other party on a take-it-or-leave-it basis. Such contracts are legal but are sometimes rescinded on the grounds of unconscionability and the absence of one party’s free will to enter a contract.

Defamation

A false statement or an action that harms the reputation or character of an individual, business, product, group, government, or nation.