In Certain Cases, a Third Party Can Hold a Principal

question 208

Multiple Choice

In certain cases, a third party can hold a principal to a contract even though the agent acted outside the authorization given him by his principal and even though his principal elected not to ratify the contract made by the agent. The third party can enforce the contract because of

• A) the reasonable agent theory.
• B) the agent's apparent authority.
• C) fiduciary duty
• D) agency by express agreement.
• E) the failure of the principal to register the agency agreement.

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