Tara,an Agent,enters into a Contract on Behalf of Sue to Buy

question 8

Multiple Choice

Tara,an agent,enters into a contract on behalf of Sue to buy 100 pencils for $1 each and 100 pens for $2 each.Sue determines that Tara got a good price for pencils but made a poor deal on pens.Sue indicates she wishes to ratify only the agreement to buy pencils.Has Sue acted properly?

• A)Yes,because Sue is free to ratify or not ratify any part of the contract.
• B)Yes,but only if Tara had legal capacity at the time of contracting
• C)No,because a principal must ratify an entire contract,not just the favorable parts.
• D)No,unless Tara had express authority to bind Sara to both contract terms.

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Definitions:

Balanced Portfolio

An investment strategy involving holding a variety of assets classes, such as stocks, bonds, and cash, to reduce risk while aiming to achieve a reasonable return.

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Revenue generated from the sale of goods or services by an organization or individual.

Earned Income

Earned income is revenue generated from the sale of goods and services. For nonprofits, this includes income earned aside from donations and grants.

Social Enterprise

Social enterprise denotes a business model that aims to address social problems or improve communities, environments, or people's lives through sustainable and revenue-generating strategies.