A Principal Is Not Bound in Contract with the Third

question 153

Multiple Choice

A principal is not bound in contract with the third party with whom the agent dealt if the agent is

• A) within her express authority.
• B) within her implied authority.
• C) within her apparent authority.
• D) outside her authority but the principal ratified it.
• E) outside her actual and apparent authority.

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Definitions:

Nonrivalry

A characteristic of a good where one person's consumption does not diminish the ability of others to consume the same good.

Public Good

A commodity or service that is provided without profit to all members of a society, either by the government or a private individual or organization.

Voluntarily Pay

Refers to making a payment or contribution freely without coercion, typically in contexts where payments are not legally mandated.

Marginal Cost

The incremental cost of producing an extra unit of a good or service.