Multiple Choice
Which of the following is true with regard to contractual relations between the principal and a third party?
A) An undisclosed principal and the third party are contractually bound if the agent acts within her actual authority, unless the contract specifies otherwise.
B) An unidentified principal is bound only if the agent acts within the scope of actual authority.
C) There is no liability on the part of the principal if the agent acts with implied authority.
D) A principal cannot be bound if the agent acts without any authority.
Correct Answer:

Verified
Correct Answer:
Verified
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