A Collateral Promise Is One Made by a Third Party

question 56

True/False

A collateral promise is one made by a third party to assume the debts or obligation of a primary party to a contract if the primary party does not perform.

Recognize the characteristics and effectiveness of group learning.

Comprehend the impact of physical attributes such as font size on learning retention.

Identify habitual behaviors in professional contexts.

Understand the role of modeling and observational learning in skill acquisition.

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Definitions:

Gratuitous Agent

An agent who acts on behalf of another person (the principal) without expecting or receiving any form of compensation.

Consideration

Something of value exchanged between parties in a contract, making the agreement legally binding.

Agency Relationship

A legal relationship in which one party, the agent, acts on behalf of another, the principal, in dealings with third parties.

Tort Liability

Legal responsibility for damages caused by a civil wrong or injury other than breach of contract.