Which of the following is true if an agent has no actual or apparent authority to act on behalf of a principal, but the agent still enters into a contract with a third party?
A) The principal is bound only if the principal is a disclosed principal.
B) The principal is bound only if the principal is an unidentified principal.
C) The principal is bound only if the principal is a partially disclosed principal.
D) The principal is bound only if the principal is a disclosed principal or a partially disclosed principal.
E) The principal is not bound unless the principal ratifies the contract.
Correct Answer:
Verified
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