In General,an Undisclosed Principal and the Third Party to a Contract

question 34

True/False

In general,an undisclosed principal and the third party to a contract are contractually bound if the agent acts within the scope of his actual authority in making the contract.

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Definitions:

Nominal Interest Rate

The interest rate before adjustments for inflation, indicating the basic rate at which interest is paid or earned.

Real Interest Rate

The interest rate that has been adjusted for inflation, showing the real cost of funds to the borrower and the real yield to the lender.

Social Security

A government program designed to provide financial assistance and support to people with inadequate or no income, primarily the elderly, disabled, and families with dependent children.

Inflation

The quickening in the standard cost evaluation for goods and services, wearing down the strength to purchase.