Asked by Emily Huber on Jul 05, 2024
Verified
Generally, the liability of a principal on a contract formed by an agent with a third party depends on whether the agent was authorized to act.
Liability
Refers to legal responsibility for one's actions or omissions, typically resulting in the obligation to pay damages or compensation.
Authorized
Officially given permission or power to do something or to act in a certain capacity.
- Recognize the conditions under which a principal is liable for contracts formed by an agent.
Verified Answer
ZK
Zybrea KnightJul 05, 2024
Final Answer :
True
Explanation :
The liability of a principal on a contract formed by an agent with a third party generally depends on the agent's authority to act on behalf of the principal. If the agent was authorized, the principal is usually bound by the contract.
Learning Objectives
- Recognize the conditions under which a principal is liable for contracts formed by an agent.