Which of the Following Is True with Respect to the Agency

question 15

Multiple Choice

Which of the following is true with respect to the agency relationship?

• A) An agent acting gratuitously can never bind the principal.
• B) An agent's apparent authority may be implied from the position that the agent holds in the employer's organization.
• C) When a principal has specifically limited the authority of the agent, that agent can never bind the principal in a contract, even if the agent acts outside his authority.
• D) An agent's authority is limited to whatever authority the principal specifically gives the agent.
• E) Actual authority is the authority the principal has implied in conversations with a third party.