An Agent Making a Proper Contract with a Third Person

question 28

Multiple Choice

An agent making a proper contract with a third person on behalf of a disclosed principal:

• A) has no personal liability on the contract.
• B) is liable only to the principal on the contract.
• C) is liable only to the third party on the contract.
• D) is personally liable to both the principal and the third person on the contract.

---

Definitions:

Seniority-Based

A system where decisions regarding layoffs, promotions, and other job-related benefits are made based on the length of time an employee has worked at an organization.

Merit Bonuses

Compensation rewards given to employees based on their performance, as a way to incentivize higher productivity or achievement of certain goals.

Skill-Based Pay

A compensation system that bases employee pay on the skills and knowledge they possess, rather than their job position or title.

Sociotechnical System

An approach to complex organizational work design that recognizes the interaction between people and technology in workplaces.