Which of the Following Is True If a Third Party

question 61

Multiple Choice

Which of the following is true if a third party comes to know of an undisclosed principal's identity and obtains a judgment against the principal?

• A) The agent remains liable to the third party.
• B) The agent remains liable to the third party unless the dispute involves an amount less than $1,000 in which case the agent is released.
• C) The agent remains liable to the third party unless the dispute involves an amount less than $500 in which case the agent is released.
• D) The agent is released from liability to the third party.
• E) The agent is released from liability to the third party unless the principal resides in another state and has not paid the judgment within 30 days from when it was rendered.

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Definitions:

Commercial Money Market

A segment of the financial market where commercial banks and other institutions lend and borrow short-term, high-quality debt securities.

Unconditionally

Without any conditions or limitations; absolutely.

Draft

A preliminary version of a piece of writing or document that is open for discussion, modification, or approval.

Instrument Value

The actual worth or significance of a financial document, like a stock or bond, in transactions.