Which of the Following Is Correct with Respect to the Ratification

question 40

Multiple Choice

Which of the following is correct with respect to the ratification of an agent's contracts?

• A) A principal can ratify a contract where the agent has gone beyond both his actual and apparent authority.
• B) A principal can only ratify an agreement entered into by an agent if his name has not been used.
• C) When a contract entered into by an agent is ratified by a principal, it commences at the time the principal ratifies the contract.
• D) The agent can set a time limit within which the ratification must take place.
• E) A contract can only be ratified if the principal was not able to enter into the contract herself at the time of ratification.

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Definitions:

Representative Heuristic

A mental shortcut used in decision-making, where the likelihood of an event is estimated based on how similar it is to the stereotype of the event.

Correspondent Inference

The process by which observers infer the stable dispositions of others from their observed behavior, particularly when the actions are non-common or unexpected.

Representativeness Heuristic

The tendency to overestimate the likelihood that a target is part of a category if the person has features that seem representative of that category.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a person's mind when evaluating a specific topic, concept, method, or decision.