Which of the following is true with respect to the agency relationship?
A) An agent acting gratuitously can never bind the principal.
B) When a principal has specifically limited the authority of the agent, that agent can never bind the principal in a contract, even if the agent acts outside his authority.
C) Actual authority is the authority the principal has implied in conversations with a third party.
D) An agent's authority is limited to whatever authority the principal specifically gives the agent.
E) An agent's apparent authority may be implied from the position that the agent holds in the employer's organization.
Correct Answer:
Verified
Q22: If a third party relies on the
Q25: With respect to the formation of agency
Q26: In which of the following situations will
Q31: A principal is not bound in contract
Q41: Explain under what circumstances an agent can
Q107: Apparent authority is the authority the agent
Q114: The ratification of a contract by the
Q164: What restrictions are there on a principal's
Q169: Joe is a salesman for Harry's Fine
Q194: Discuss the concept of vicarious liability as
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents