A Principal Is Not Bound in Contract with the Third

question 136

Multiple Choice

A principal is not bound in contract with the third party with whom the agent dealt if the agent is

• A) within his implied authority.
• B) within his apparent authority.
• C) outside his actual and apparent authority.
• D) within his express authority.
• E) outside his authority but the principal ratified it.

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Definitions:

Common

Occurring frequently or existing in a large amount; widespread.

Ciliary Muscle

A ring-shaped muscle in the eye that changes the shape of the lens to focus on near or distant objects.

Visual Accommodation

Process of making adjustments to lens shape so light from an object falls on the retina.

Lens

A piece of glass or other transparent material shaped to converge or diverge transmitted light and form an image.