An Agent Who Purports to Act for a Legally Nonexistent

question 92

True/False

An agent who purports to act for a legally nonexistent principal is personally liable when the agent knows or has reason to know the principal does not exist.

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Definitions:

Beneficiaries

Beneficiaries are individuals or entities designated to receive benefits or assets under a legal instrument, such as a will, trust, or insurance policy.

Chain-Style Business Operation

A type of franchise in which the franchise operates under the franchisor’s business name and is required to follow the franchisor’s standards and methods of business operation.

Franchise

A business model that allows individuals to own and operate a branch of a larger company using its name, trademarks, and products.

Standards and Methods

Established procedures and guidelines designed to achieve consistency, reliability, and quality in executing tasks or manufacturing products.