The Apparent Authority of an Agent Is Not Sufficient to Bind

question 50

True/False

The apparent authority of an agent is not sufficient to bind a principal in a contract with a third party which is negotiated after the agency relationship has been terminated.

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Definitions:

Cash Shortages

The situation where the cash on hand is less than the expected amount, often indicating errors or theft.

Accounts Payable

Liabilities of a business that represent amounts owed to creditors for goods and services purchased on credit.

Cash Account

An account that records all transactions involving cash inflows and outflows.

Cash Payments

Transactions where payment for goods, services, or obligations is made using physical currency or checks instead of digital means.