An agent negotiates a contract with a third party,for which the agent did not have express authority.Which of the following is true?
A) The principal can never be held liable on the contract because the agent exceeded his authority.
B) The principal can be liable on the contract only if the agent had implied authority to enter into the contract.
C) The principal can be liable on the contract only if apparent authority was present.
D) Either implied or apparent authority might cause the principal to be liable on the contract.
Correct Answer:
Verified
Q45: Implied authority can be best described as
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Q47: Where the principal makes representations to a
Q48: An agency arrangement based on the conduct
Q49: The death of which party or parties
Q51: Incidental authority is a kind of:
A) express
Q52: When an agent terminates an agency arrangement,the
Q53: An express written agency agreement that is
Q54: In the context of agency,ratification refers to:
A)
Q55: Apparent authority can be best described as
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