An Agent with No Express, Implied, or Apparent Authority to Do

question 13

Multiple Choice

An agent with no express, implied, or apparent authority to do so identified himself as an agent for his principal, and on behalf of his principal bought a computer. The principal refused to ratify the contract. On these facts, which of the following is true?

• A) The principal would have to pay for the computer because the agent was an agent for that principal.
• B) The agent could be sued by the seller of the computer for breach of his warranty of authority.
• C) By exceeding his authority, the agent has become the buyer of the computer himself.
• D) The seller of the computer could sue the agent for breach of contract for saying he was an agent.
• E) The seller could sue the principal for breach of warranty of authority.

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Definitions:

Bank Statement

A document provided by a bank detailing all transactions in an account over a specific period, including deposits, withdrawals, and balances.

Insufficient Funds

Insufficient funds occur when an account does not have enough money to cover drafts against it, leading to a bounce check or declined transaction.

Adjusted Cash Balance

A financial statement figure that reflects the actual amount of cash available, adjusted for items like outstanding checks or deposits in transit.

Check Register

A record, usually part of a checkbook, that allows individuals or businesses to track their deposits and withdrawals.