A Principal Is Bound in Contract with the Third Party

question 67

Multiple Choice

A principal is bound in contract with the third party with whom the agent dealt if the agent is:

• A)within his or her implied authority.
• B)within his or her express authority.
• C)within his or her apparent authority.
• D)outside his or her authority but the principal ratified it.
• E)all of the above

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Definitions:

Coupon

The face value percentage that represents the yearly interest payment on a bond.

Semiannually

Occurring or conducted twice a year; typically refers to payments, reports, or evaluations made every six months.

Quoted

Refers to the latest price at which a stock, commodity, or currency was traded, often seen on exchanges.

Market Price

The present cost at which a service or asset is available for purchase or sale in a specific market.