Identify the True Statement Concerning the Law of Principal and Agent

question 18

Multiple Choice

Identify the true statement concerning the law of principal and agent.

• A)An agent with no express authority can never bind his or her principal into a contract with a third party.
• B)An agent who puts himself in a position where the agent's interests conflict with those of the principal is in breach of his or her duties even though no actual harm comes to the principal.
• C)Agency is only created by way of a contract.
• D)The principal and his or her agent owe each other the same duties.
• E)An agent can never be liable to the third party himself or herself while the principal will bear no such liability.

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Definitions:

Mutual Meaning

A shared understanding between parties about the significance or implications of a concept or term.

Organizational Goals

The strategic objectives or targets that an organization aims to achieve within a specific timeframe.

Eco-friendly

Practices, products, or policies that are not harmful to the environment and support sustainability.

Interest Group

An organized group of individuals or organizations that aims to influence public policy or promote a particular cause or interest.