A Principal Is Liable on a Contract Made by His

question 73

True/False

A principal is liable on a contract made by his agent if the agent had actual authority to make the contract.

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Definitions:

Maturity Matching

A financial strategy that entails matching the duration of assets and liabilities to minimize risk associated with cash flow mismatches.

Project Duration

The total time required to complete a project from start to finish.

Financing Term

Conditions and duration under which money is borrowed or lent, including interest rate, repayment schedule, and other loan covenants.

Red Herring

A preliminary prospectus filed by a company with securities regulatory authorities, typically regarding an upcoming public offering, which omits some details including the price and share number.