If an Agent Has No Authority but Nevertheless Contracts with a Third

question 16

True/False

If an agent has no authority but nevertheless contracts with a third party,the principal can be held liable on the contract.

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Definitions:

AFL

American Federation of Labor, a national federation of labor unions in the United States.

Samuel Gompers

An American labor union leader and a key figure in the founding of the American Federation of Labor (AFL).

Mediator

A neutral third party who assists in resolving disputes through communication and negotiation.

Settlement

The resolution of a legal dispute or agreement process, often involving the payment of compensation or fulfillment of contractual obligations.