The Key to Determining Whether a Principal Is Liable for Contracts

question 9

True/False

The key to determining whether a principal is liable for contracts made by his agent is the amount of compensation paid to the agent.

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Definitions:

Money Supply

The total amount of monetary assets available in an economy at a specific time, including cash, coins, and balances held in checking and savings accounts.

Federal Reserve Board

The governing body of the Federal Reserve System, the central banking system of the United States, responsible for setting monetary policy, regulating banks, and ensuring the stability of the financial system.

U.S. Government

The federal government of the United States, a republic consisting of three branches: legislative, executive, and judicial, established by the Constitution to govern the country.

Unemployment

The condition of being jobless and actively looking for work, typically measured as a percentage of the labor force.