Statement I: If an agent acts in his name, the principal shall have a right of action against the persons with whom the agent has contracted. Statement II: Should there be a stipulation that the agent shall advance the necessary funds, he shall be bound to do so even if the principal is insolvent. Only Statement I is true. Only Statement II is true. Both statements are true. Both statements are false.

Statement I: If an agent acts in his name, the principal shall have a right of action against the persons with whom the agent has contracted. Statement II: Should there be a stipulation that the agent shall advance the necessary funds, he shall be bound to do so even if the principal is insolvent. Only Statement I is true. Only Statement II is true. Both statements are true. Both statements are false.

Business Its Legal Ethical & Global Environment

10th Edition

ISBN:9781305224414

Author:JENNINGS

Publisher:JENNINGS

Chapter12: Contracts And Sales:introduction And Formation

Section12.5: Formation Of Contracts

Problem 5.3CQ

See similar textbooks

Similar questions

TRUE OR FALSE An instrument payable out of a contingency is not negotiable even if the contingency happened. The drawee in a promissory note must be named or otherwise indicated therein with reasonable certainty. An endorsement cannot be stricken out. A person who signed an instrument without indicating in what capacity he signs shall be considered an endorser. The defense that the instrument is undelivered and was completed without authority is a real defense.
As regards antichresis, which of the following is not correct? * a. The amount of the principal and of the interest shall be specified in writing, otherwise the contract of anti chresis shall be void b. The debtor, unless there is stipulation to the contrary is obliged to pay the taxes and charges upon the estate c. The debtor cannot reacquire the enjoyment of the immovable without first having totally paid what he owes the creditor d. The creditor is bound to bear the expenses necessary for the preservation and repair of the immovable
In case the debtor does not make the application of payment nor the creditor does not also state in which application of payment of payment is made, then application is made by operation of law. True False
TRUE or FALSE 1. Statute of Fraud requires that certain executed contracts must be reduced into writing to prevent the commission of fraud. 2. Annulment of the contract is the proper remedy if the contract does not reflect the real intention of the parties and the element of the consent is already present. 3. Automatic transfer of ownership from the creditor to the debtor which is prohibited by law is also known as pactum commissorium. 4. Stipulation pour autrui applies only to executory contracts. 5. Mutual promise to marry which was reduced into writing is enforceable. 6. As a rule, a contract entered into by a guardian on behalf of a minor is rescissible.
46. S1. Contracts are binding and effective only between the parties, their heirs and assigns. S2. Thus, an heir of a debtor is liable to the creditor for the full amount of the obligation. A. True, True B. True, False C. False, True D. False, False
Which type of agent is not liable for a breach of contract by his principal: a. undisclosed agent b. partially disclosed agent c. fully disclosed agent d. all of the above
In duty to compensate the agent owes to pay an agreed-upon amount to the principal Select one True False
subject accounting :- QUESTION 1 With reference to statutory provisions and decided cases, define "consideration" and explain THREE (3) types of consideration. QUESTION 2 An agreement is voidable if there is misrepresentation or fraud which induces the innocent party to enter into the agreement. With reference to statutory provisions and decided cases, explain the above statement.
S1: Pactum commissorium is a stipulation whereby the thing used as security shall automatically become the property of the creditor in the event of non-payment of the principal obligation in due time. S2: Pactum commissorium may be a valid stipulation by agreement of parties. a. Only S1 is true. b. Only S2 is true. c. Both are true. d. Both are false.
A covered member creates a blind trust and transfers assets into the blind trust. The covered member will not supervise or participate in the trust’s investment decisions during the term of the trust. if the covered member retains the right to amend or revoke the trust, Will the trust and the underlying assets be considered the covered member’s direct financial interests? Yes or No
Which of the following is not a criterion that must be met for an item to be classified as a liability? A certain cash payment will occur in the future. A sacrifice will require the entity’s assets or services. There is a probable future sacrifice. There is a present obligation that results from a past transaction.
Similar to a like-kind exchange, the receipt of “boot” under Sec. 351 can cause loss to be recognized. Question 4 options: True False