Which of the Following Is True If an Agent Has

question 47

Multiple Choice

Which of the following is true if an agent has no actual or apparent authority to act on behalf of a principal but the agent still enters into a contract with a third party?

• A)The principal is bound,but only if the principal is a disclosed principal.
• B)The principal is bound,but only if the principal is an unidentified principal.
• C)The principal is bound,but only if the principal is a partially disclosed principal.
• D)The principal is bound,but only if the principal is a disclosed or partially disclosed principal.
• E)The principal is not bound unless the principal ratifies the contract.

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Definitions:

Business of Selling

The activity or profession of promoting and exchanging goods or services for money.

Title Warranties

Legal guarantees provided by a seller to a buyer that they possess a clear and unencumbered title to the property or goods being sold.

Disclaim or Modify

To reject, deny responsibility, or change terms and conditions in an agreement or statement.

Transferring Rights

The act of moving or assigning legal rights or interests from one party to another.