An Agent Negotiates a Contract with a Third Party for Which

Multiple Choice

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, but only if the agent had implied authority to enter into the contract.
C) The principal can be liable on the contract, but only if apparent authority was present.
D) The principal may not ratify the contract.
E) The principal may ratify the contract, or the principal may be held responsible if the existence of either implied or apparent authority can be established.