When an Agent Takes an Unauthorized Action, The

question 36

Multiple Choice

When an agent takes an unauthorized action, the:

• A) action cannot be ratified by the principal.
• B) principal can transfer liability to the agent while enjoying the benefits of the action.
• C) principal may not ratify only a portion of the action.
• D) action may be ratified provided that the principal is a corporation.

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Definitions:

Antique Price

The market value or cost of an object that has historical significance or is considered collectible due to its age.

Interest Rate

The rate at which interest is either incurred or earned for borrowing or lending money during a specific time frame.

Investment Purposes

The intent behind putting money into financial schemes, shares, property, or a commercial venture, aiming for a future financial return.

Vinegar

A sour liquid containing acetic acid, often used for culinary purposes like pickling and as a condiment.