A Principal May Incur Liability

question 17

Multiple Choice

A principal may incur liability

• A)if a third party is induced to enter into a contract by the fraudulent misrepresentation of an agent.
• B)by revealing his or her identity in a situation where an agent negotiated a contract without disclosing his agency.
• C)where an agent reveals his agency in concluding a contract and acts within his authority.
• D)where an agent reveals his agency in concluding a contract and exceeds his authority.
• E)All of the responses are correct.

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Definitions:

Subduction Zone

A region where one tectonic plate moves under another, often leading to volcanic activity and earthquakes.

Metamorphosed Rocks

Rocks that have undergone a change in mineral composition and texture due to extreme heat and pressure conditions.

Wedge-Shaped Zone

A geological area characterized by its wedge or triangular shape, often indicating tectonic activity or sediment accrual at plate boundaries.

Accretionary Prism

A geological structure formed by the accumulation of sedimentary and oceanic plate material scraped off a subducting plate, typically found at convergent plate boundaries.