Multiple Choice
The purpose of an agency relationship is to:
A) allow the principal to extend his business activities by authorizing agents to enter into contracts with third persons on the principal's behalf.
B) encourage business growth by protecting employers from liability for torts or criminal activity.
C) allow a principal to contract through agents in ways he would not be able to contract on his own,such as creating valid contracts in situations where the principal could only create voidable contracts on his own.
D) eliminate the distinction between employees and independent contractors.
Correct Answer:

Verified
Correct Answer:
Verified
Q7: Apparent authority arises out of words or
Q8: Martinez makes a contract with Bowers on
Q9: An agent has the power to contractually
Q10: Apparent authority may arise in all but
Q11: Spoken or written words the principal communicates
Q13: If an agent at his principal's direction
Q14: Under the Third Restatement,an agent who represents
Q15: Susan is planning to incorporate a new
Q16: There can be apparent authority where a
Q17: The principal may ratify either the entire