Which of the Following Is True About the Liability of an Agent

question 12

Multiple Choice

Which of the following is true about the liability of an agent who has the authority to sign?

• A) Under agency law, the principal would be bound by the act of the agent, if the signature is the authorized signature of the principal
• B) An authorized signature may be ratified by the principal.
• C) A negligent person can assert lack of authority against a holder in due cause.
• D) Authorized signatures are not binding.
• E) The general rule in agency law is that the agent is liable if he signs his own name making clear he is doing so as an agent.

---

Definitions:

Specific Performance

A legal remedy requiring a party to perform their part of a contract, rather than simply paying damages for failing to do so.

Enforce Joyce's Promise

This phrase suggests taking legal or formal steps to ensure that an obligation or commitment made by someone named Joyce is fulfilled.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money.

Job Loss

The act of becoming unemployed due to reasons such as layoffs, company closure, or termination, often impacting the individual's income and livelihood.