A person may rely on the acts of the officers of a corporation without inquiry by virtue of

Question

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The indoor management rule, also known as the rule in Turquand's case, provides that a person dealing with a company is entitled to assume that the officers of the company have the authority to bind the company in their dealings, as long as the officers are acting within their apparent authority. The rule protects third parties who rely on the apparent authority of the officers without the need for further investigation or inquiry. Therefore, a person may rely on the acts of the officers of a corporation without inquiry by virtue of the indoor management rule. The other choices are not applicable in this scenario.

A Person May Rely on the Acts of the Officers