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Which of the Following Is True with Regard to Contractual

Question 59

Multiple Choice

Which of the following is true with regard to contractual relations between the principal and a third party?


A) There is no liability on the part of the principal if the agent acts with implied authority.
B) An undisclosed principal and the third party are contractually bound if the agent acts within her actual authority,unless the contract specifies otherwise.
C) Under the Second Restatement,no principal is bound if the agent acts without any authority.
D) A partially disclosed principal is bound only if the agent acts within the scope of actual authority.

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