Asked by Grace Parker on Jul 04, 2024
Verified
Which of the following is true regarding whether Sakura is personally bound on the contract with Gwen?
A) Sakura is not personally bound because she was acting on behalf of Jason.
B) Sakura is personally bound unless she can establish that Gwen would not have sold her the book if she had known that Jason was involved.
C) Sakura is personally bound unless she can establish that Jason has the funds with which to pay Gwen.
D) Sakura is not personally bound unless Jason is legally insolvent.
E) Sakura is personally bound.
Legally Insolvent
The condition of being unable to pay debts as they fall due or having liabilities that exceed the value of assets.
- Comprehend the principles of agency, principals, and the accountability of principals for the deeds of their agents.
- Identify the impact of an agent's decisions on the principal's liability within both tort and contract situations.
Verified Answer
IT
Ibrahim TounkaraJul 06, 2024
Final Answer :
E
Explanation :
Sakura is personally bound because she made the agreement with Gwen without disclosing that she was acting on behalf of Jason. In the absence of Gwen knowing that Sakura was acting as an agent for Jason, Sakura is the party to the contract and thus personally bound by it.
Learning Objectives
- Comprehend the principles of agency, principals, and the accountability of principals for the deeds of their agents.
- Identify the impact of an agent's decisions on the principal's liability within both tort and contract situations.