Which of the Following Statements Is True of the Liability

question 39

Multiple Choice

Which of the following statements is true of the liability of an agent who is acting for a nonexistent or incompetent principal?

• A) If the third person is unaware of the lack of capacity of a nonexistent or incompetent principal, the agent is not personally liable on the contract.
• B) A minor is considered an incompetent principal, and an agent acting on behalf of such principals is personally liable on the contract.
• C) If the principal is judged insane, the law imposes an apparent warranty by the agent that the principal has the capacity to be bound.
• D) A person judged insane is considered to be nonexistent or incompetent and is personally liable for acts undertaken by an agent.

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Definitions:

Co-acting Work Groups

Groups whose members perform their tasks independently but in a shared space or context, often with minimal direct collaboration.

Coordination

The process of organizing activities and resources efficiently and effectively to achieve set objectives.

Cooperation

The process of working together towards the same end, involving mutual benefit and shared goals.

Collective Efficacy

The shared belief of a group in its conjoint capabilities to organize and execute the courses of action required to produce given levels of attainments.