Question: 1. How does a principal become liable to third parties on contracts? The principals agent has the authority to bind the principal in a contract

1.

How does a principal become liable to third parties on contracts?

The principals agent has the authority to bind the principal in a contract with a third party.

The principal directly signs a contract with a third party.

The agent ratifies the contract.

A principal is not liable to third parties on contracts.

2.

When is an agent liable on a contract that the agent entered into in the business of the agents principal? Choose 3 answers.

when the agent is acting without authority

when the principal is not satisfied with the terms of the contract

if the agent entered into the contract in a personal capacity

when the principal is undisclosed

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

Q:

To help familiarize you with the financial reporting of a real company to further your understanding of the chapter material you are learning. Each chapter will have a financial statement case that...

Q:

Question 2 2 What type of authority does a power of attorney confer? apparent authority oral express authority written express authority implied authority Question 2 3 Bernadette asks Lyle to find a...

Q:

1) How does a principal become liable to third parties on contracts? A principal is not liable to third parties on contracts. The principals agent has the authority to bind the principal in a...

Q:

What is required to form an agency relationship? The agent must have contractual capacity. The principal must pay the agent. The agent and principal must agree to enter the relationship. The agency...

Q:

What is required to form an agency relationship? The agent must have contractual capacity. The principal must pay the agent. The agent and principal must agree to enter the relationship. The agency...

Q:

How does a principal become liable to third parties on contracts? A principal is not liable to third parties on contracts. The agent ratifies the contract. The principal s agent has the authority to...

Q:

1. What are the fiduciary duties of an agent to her principal? Choose 3 answers. A. accounting B. obedience C. indemnification D. loyalty 2. How does a principal become liable to third parties on...

Q:

How does a principal become liable to third parties on contracts? A. The agent ratifies the contract. B. The principal's agent has the authority to bind the principal in a contract with a third...

Q:

How does a principal become liable to third parties on contracts? A principal is not liable to third parties on contracts. The agent ratifies the contract. The principal's agent has the authority to...

Q:

How does a principal become liable to third parties on contracts? The principal directly signs a contract with a third party.the agent ratifies the contract.

Q:

Please be thorough and brief with your answers and no copy and paste sentences or paragraphs from other sources ( and please no copy and paste excerpts from other sources), please. Please simplify as...

Q:

Let X represent the result of the toss of a fair die. Find the following probabilities. a. P(X = 1) b. P(X = 6)

Q:

company, which is one of several companies owned and managed by the same family. The summarised acquisition and integration of other companies. Glory Ple is interested in acquiring Rita Plc, a...

Q:

Which one of these is a money market security? Multiple Choice Common stock 2 0 - year bond Commercial paper 2 - year bond

Q:

Determine the major differences between U.S. GAAP and IFRS disclosure reporting requirements related to each separately reportable operating segment. Next, give your opinion as to whether either U.S....