In an Agent's Negotiations on Behalf of an Undisclosed Principal

question 49

Multiple Choice

In an agent's negotiations on behalf of an undisclosed principal:

• A) no agreement is binding until the identity of the principal is provided.
• B) the agent cannot be held liable for the breach of a principal.
• C) the principal will be bound by any contract the agent has the authority to make.
• D) the principal is bound to any agreement,even if the agent acts without authority.

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Definitions:

Credit Sales

Credit Sales are transactions in which goods or services are provided to customers with the understanding that payment will be made at a later date.

Credit Cards

Financial instruments issued by banks or financial institutions allowing cardholders to borrow funds at the point of sale, subject to repayment terms and interest rates.

Nonsufficient Funds Checks

Checks that cannot be processed due to the drawer’s account lacking sufficient funds, leading to a bank refusal to honor the check.

Collections

The process of pursuing payments of debts owed by individuals or businesses.