It Is Possible for a Principal to Be Bound by the Acts

question 41

True/False

It is possible for a principal to be bound by the acts of an independent agent even where no contract of agency exists between them.

---

Definitions:

Price

The expenditure necessary to secure a good or service.

Consumer Surplus

The discrepancy between the price consumers are ready to pay for a good or service and the price they end up paying.

Area Representation

The graphical depiction of quantitative relationships, often used in statistical and economic models to illustrate areas under curves or between lines.

Price

The price tag reckoned, necessitated, or conveyed in compensation for a particular thing.