When an Agent Negotiates a Contract Between a Principal and a Third

question 9

True/False

When an agent negotiates a contract between a principal and a third party,the agent acquires no rights or duties under the contract.

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Definitions:

Payee

The individual or entity to whom money is paid or owed, especially in the context of checks or electronic transfers.

Fraud

Deceptive action designed to provide an unfair advantage or benefit to the individual or entity committing the fraud.

HDC

Holder in Due Course, a term in negotiable instruments law referring to someone who has acquired a negotiable instrument in good faith for value, with certain protections.

Promissory Note

A financial instrument containing a written promise by one party to pay another party a definite sum of money at a specified future date or on demand.