Question

Select the best answer regarding the law of agency:

A. An agent may not delegate authority if acting as a known agent for a principal and the personal performance of the agent was bargained for
B. Where an agent has breached their fiduciary duty, they will be held liable for breach of warranty of authority
C. An agent may bind a principal to a contract where the principal lacked authority to enter into the contract at the time it was entered into but has capacity at the time of ratification
D. Where an agent has actual, apparent or an agency relationship formed by ratification, the agent is bound to the terms of an agreement entered into

Answer 1

The best answer regarding the law of agency is D.

Step-by-step explanation:

The best answer regarding the law of agency is D. Where an agent has actual, apparent, or an agency relationship formed by ratification, the agent is bound to the terms of an agreement entered into.

This means that if an agent acts on behalf of a principal and enters into an agreement, they are legally obligated to follow the terms of that agreement.

For example, if an agent signs a contract for a principal without the principal's authorization, the agent can still be bound by that contract if it falls under one of the categories mentioned.