A Situation in Which One Party Makes a Contractual Agreement

question 123

Multiple Choice

A situation in which one party makes a contractual agreement with a second party in the expectation that the second party will act on its behalf is known as:​

• A)a collusion.
• B)a horizontal agreement.
• C)an authority relation.
• D)a principal-agent problem.
• E)a vertical agreement.

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Definitions:

Haploid Gametes

Sex cells (sperm or ova) containing half the number of chromosomes of a normal cell, crucial for sexual reproduction.

Mesoderm

The middle layer of the three primary germ layers in the early embryo, which develops into muscles, bones, circulatory system, and other internal organs.

Ectoderm

The outermost layer of cells or tissue of an embryo in early development, giving rise to the epidermis and nervous system.

Endoderm

The innermost layer of cells or tissue of an embryo in early development, which gives rise to the lining of the digestive and respiratory systems.