Mathilde Entered into an Agreement with Pascal Saying That She

question 71

Multiple Choice

Mathilde entered into an agreement with Pascal saying that she was acting on behalf of Citron Used Cars to purchase cars.In fact, Mathilde had no actual or apparent authority to do so.Moreover, Citron now refuses to ratify the agreement.In this situation, Pascal can hold

• A)Citron liable under the contract.
• B)Mathilde liable under the contract.
• C)Citron liable for breach of fiduciary duty.
• D)Mathilde liable for breach of warranty of authority.
• E)Mathilde liable for breach of fiduciary duty.

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Definitions:

National Industrial Recovery Act

A 1933 U.S. legislation aimed at boosting economic growth by reducing unemployment and increasing purchasing power through regulations on wages, prices, and working hours.

Fixed Prices

Prices that do not change in response to market conditions.

Corporate Taxes

Government levies placed on the earnings or profits of businesses.

Economic Environment

The total of economic factors, such as employment, income distribution, and investment opportunities, that influence the behavior of consumers and businesses.