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

question 100

Multiple Choice

Where an agent enters a contract,not under seal,without disclosing 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)a and c.

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Definitions:

Stockbroker

A professional who buys and sells stocks and other securities on behalf of clients in exchange for a fee or commission.

Securities

Financial instruments that represent an ownership position in a publicly traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

Collateral

An asset that a borrower offers to a lender as security for a loan.

Hypothecated

Hypothecated refers to assets that are pledged as collateral for a loan without transferring title or possession to the lender, often used in secured loans.