In Certain Cases, a Third Party Can Hold a Principal

question 70

Multiple Choice

In certain cases, a third party can hold a principal to a contract even though the agent acted outside the authorization given him by his principal and even though his principal elected not to ratify the contract made by the agent. The third party can enforce the contract because of

• A) the reasonable agent theory.
• B) agency by express agreement.
• C) the failure of the principal to register the agency agreement.
• D) the agent's apparent authority.
• E) fiduciary duty.

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Definitions:

E-mail Messages

Digital messages sent electronically from one user to another over a network, primarily using the Internet.

Client/server Model

An architecture dividing applications into two roles: clients request services, and servers provide services, supporting networked, application service requests.

TCP

Transmission Control Protocol, a fundamental protocol in the Internet protocol suite that enables reliable, ordered, and error-checked delivery of a stream of bytes between applications running on hosts communicating via an IP network.

Three-way Handshake

A method used in a TCP/IP network to establish a connection between a client and a server that involves three steps: the initiation of the connection by the client, the acknowledgment by the server, and the acknowledgment of the acknowledgment by the client.