In A[n] _____ Relationship, the Agent Is Authorized to Act

question 75

Multiple Choice

In a[n] _____ relationship, the agent is authorized to act for and on behalf of the principal, who hires the agent to represent him or her.

• A) Authority
• B) Principality
• C) Agency
• D) Decreed
• E) Conferred

Understand the legal standards for reliance on statements and representations during contractual agreements.

Identify and compare different defenses available for contract rescission.

Describe the significance of material facts in the context of contract law.

Understand the principles of mistake of value versus mistake of fact in contract disputes.

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Definitions:

Journal Entries

Records in accounting that document every financial transaction affecting the accounts of a business, used to track and manage financial activities.

Note Payable

A written promise to pay a specified amount of money, typically with interest, by a certain date.

Decrease Assets

A reduction in the value or quantity of the assets owned by a company or individual.

Prepaid Insurance Account

An asset account on the balance sheet representing insurance premiums that have been paid in advance and are gradually expensed over the coverage period.