If a Contract Is Ambiguous Regarding Whether the Agent Has

question 45

Multiple Choice

If a contract is ambiguous regarding whether the agent has signed in a representative or an individual capacity:

• A) there is a presumption that the agent signed in a representative capacity.
• B) there is a presumption that the agent signed in an individual capacity.
• C) the agent and the principal will both be liable on the contract.
• D) parol evidence is admissible to establish the character in which the agent was acting.

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Definitions:

Cash Provided

Funds that are generated and made available by a business through its operational activities, investments, or financing.

Investing Transactions

Financial activities related to the purchase or sale of long-term assets and investment securities.

Loss on Sale

The financial loss incurred when an asset is sold for less than its carrying amount on the balance sheet.

Indirect Method

A technique used in cash flow statement preparation that adjusts net income for the effects of non-cash transactions and changes in working capital.