Where an Agent Enters a Contract,not Under Seal,without Disclosing He

question 28

Multiple Choice

Where an agent enters a contract,not under seal,without disclosing he or she is an agent,the other contracting party

• A)may bring an action for misrepresentation.
• B)must first consent to ratification of the contract by the principal,for the principal to displace the agent.
• C)may sue either the agent or the principal,but not both,if the principal is later revealed,and there is breach.
• D)may sue either the agent or the principal,or both,if the principal is later revealed,and there is breach.
• E)All of the responses are correct.

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Definitions:

Common Stockholders' Equity

The portion of a company's equity that is attributable to common stock owners, reflecting their residual interest in the company's assets after liabilities are deducted.

Net Income

The amount of profit a company holds onto after all expenditures and taxes have been taken out of its revenue.

Retained Earnings

The portion of a company's profit that is held back and not distributed to shareholders as dividends.

Net Sales

This is the revenue from all sales of goods and services less returns, allowances for damaged or missing goods, and discounts.