Asked by
Aleksandra Pachebut
on Nov 30, 2024
Verified
An agent may agree to become liable on a contract between a principal and a third party in all but which of the following ways?
A) Making the contract in the agent's own name.
B) Co-making the contract with the principal.
C) Disclosing the principal's name and the agency relationship.
D) Guaranteeing that the principal will perform the contract between the third party and the principal.
Agency Relationship
A legal arrangement in which one party, the agent, is authorized to act on behalf of another, the principal, in business transactions.
Liable
Bound by law or duty.
Contract
A legally binding agreement between two or more parties that outlines obligations and rights.
- Identify the legal consequences for agents acting outside the scope of their authority.
- Obtain an insight into how principal-agent connections function and under what conditions a principal or agent could be accountable for contractual duties.
Verified Answer
DF
Learning Objectives
- Identify the legal consequences for agents acting outside the scope of their authority.
- Obtain an insight into how principal-agent connections function and under what conditions a principal or agent could be accountable for contractual duties.