An agent who makes a contract for a disclosed principal whose contracts are voidable for lack of contractual capacity:
a. is never liable to the third party.
b. can be liable to the third party under certain circumstances.
c. is liable to the third party only if the agent warrants the principal has capacity.
d. is ordinarily personally liable to the third party if the principal avoids the contract.
b
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Answer the following statements true (T) or false (F)
1. There is no need for managers to have employees participate in developing the budget because the budget is a management tool. 2. strategic budget is a long-term financial plan used to coordinate the activities needed to achieve the long-term goals of the company. 3. An operational budget is a short-term financial plan that coordinates activities needed to achieve short- term goals. 4. A strategic budget will be as detailed as an operational budget. 5. A static budget is a financial plan for only one level of sales volume.
For accounting purposes, stated value is treated the same way as par value
Indicate whether the statement is true or false
Sam and Tiffany enter into an implied contract. This is a contract in which the parties' conduct
A. defines the contract's terms. B. finds the contract's facts. C. terminates any unintended consequences. D. undercuts any terms based on the facts.
A principal may ask an agent to assume equal liability on a contract
Indicate whether the statement is true or false