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A Principal Is Not Liable to a Third Party for Any

question 10

True/False

A principal is not liable to a third party for any contract made by the agent acting outside the scope of his or her authority.


Definitions:

Performance Bonuses

Additional compensation awarded to employees based on the achievement of specific performance criteria.

Formal Authority

The power or right vested in an individual or role within an organization to make decisions, direct others, and enforce rules.

Organizational Politics

Activities and behaviors within an organization aimed at improving personal status or influence, often at the expense of others or the company.

Emerging Field

An area of study or interest that is gaining popularity and is in the process of establishing itself as a distinct area of expertise.

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