Penny,acting as an Agent for Felipe,enters into a Contract with Tanya,but

question 10

Multiple Choice

Penny,acting as an agent for Felipe,enters into a contract with Tanya,but Tanya knows that Penny does not have authority to enter into contracts on Felipe's behalf.Is Penny liable for making an unauthorized contract?

• A)No,because Penny lacks implied authority to enter into the contract.
• B)No,because the third party knows the agent lacks authority.
• C)No,because the agent lacks express authority to enter into the contract.
• D)Yes,because Penny entered into the contract while acting as an agent.

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Definitions:

Price Elasticity

Measures how the quantity demanded of a good changes in response to a change in the price of that good.

Coffee Sales

The volume or quantity of coffee sold within a given period.

Total Revenue

The complete amount of income generated by the sale of goods or services before any costs or expenses are subtracted.

Perfectly Price Elastic

A market situation in which demand or supply responds infinitely to changes in price, meaning any tiny price change results in an infinite quantity demanded or supplied.