An Agent Is Not Liable for Making an Unauthorized Contract

question 49

Multiple Choice

An agent is not liable for making an unauthorized contract if:

• A)the third party does not know that the agent lacks authority.
• B)the principal fails to subsequently ratify the contract.
• C)the agent does not notify the third party that he does not warrant his authority to contract.
• D)the third party actually knows that the agent lacks authority.

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Definitions:

Child-rearing Style

Refers to the methods, strategies, and practices parents use to influence, teach, and socialize their children.

Stern Punishments

Severe or strict penalties imposed as a response to an offense or misconduct.

Different Race

Refers to the categorization of humans into populations or groups based on various sets of physical characteristics, cultural history, or geographic ancestry.

Different Sex

Refers to individuals of opposite biological or identified genders.