In the Process of Assembling Land for Ace Construction Ltd

question 138

Multiple Choice

In the process of assembling land for Ace Construction Ltd.to build a supermarket, Joe entered into a contract with the seller Sam.In which of the following situations would Sam be able to sue the principal, Ace?

• A)Where Joe exceeded his apparent and actual authority.
• B)Where Joe revealed that he was acting as an agent, but did not disclose that he was acting for Ace in particular, and exceeded both his apparent and actual authority.Ace did not ratify the contract.
• C)Where Joe was acting outside his authority and did not disclose that he was acting for Ace.Sam was aware of Joe acting independently at the time he entered into the contract.
• D)Where Joe exceeded his actual authority but where Ace had led Sam to believe that Joe had the authority.
• E)Where Joe disclosed that he was acting for Ace but made the contract "subject to ratification."

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Definitions:

Incremental Manufacturing Cost

The additional cost incurred to produce an additional unit of product, including direct materials, direct labor, and variable overhead.

Production Increase

The rise in the quantity of goods and services produced by a company over a specific period.

Total Variable Cost

The total of all expenses that change in direct proportion to the amount of goods or services produced.

Manufacturing Overhead Cost

All manufacturing costs that are not directly associated with the production process, including indirect materials, indirect labor, and other overhead costs.