A Principal's Intent to Ratify a Contract

question 21

Multiple Choice

A principal's intent to ratify a contract:

• A) can only be inferred by the agent's actions.
• B) may not be implied by his acts or failure to act.
• C) may be inferred by a court from the fact that the agent accepted the benefits of an unauthorized contract.
• D) may be inferred from the principal's failure to repudiate an unauthorized contract after becoming aware of it.

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Definitions:

Elastic Demand Curve

A representation of the demand for goods or services that are very sensitive to changes in price, indicating that a small change in price leads to a large change in quantity demanded.

ATC Curve

A graph that represents the average total cost of production at different levels of output, typically U-shaped due to economies and diseconomies of scale.

Monopolistic Competitor

A monopolistic competitor refers to a market structure where many firms sell products that are similar but not identical, allowing for product differentiation and some price control.

ATC Curve

Stands for Average Total Cost curve, a graph that represents the average total cost of producing a good or service at different levels of output.