Which of the Following Statements Is True of the Liability

question 39

Multiple Choice

Which of the following statements is true of the liability of an agent who is acting for a nonexistent or incompetent principal?

• A) If the third person is unaware of the lack of capacity of a nonexistent or incompetent principal, the agent is not personally liable on the contract.
• B) A minor is considered an incompetent principal, and an agent acting on behalf of such principals is personally liable on the contract.
• C) If the principal is judged insane, the law imposes an apparent warranty by the agent that the principal has the capacity to be bound.
• D) A person judged insane is considered to be nonexistent or incompetent and is personally liable for acts undertaken by an agent.

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Definitions:

Future Detachment

The concept of disengaging from future outcomes or expectations, often related to mindfulness or reducing anxiety about what has yet to happen.

AR

Augmented Reality, a technology that superimposes computer-generated images on a user's view of the real world, thus providing a composite view.

MR

Mixed Reality; an immersive technology blending real-world and digital environments for interactive experiences.

VR

Virtual Reality, a simulated experience that can be similar to or completely different from the real world.