Final answer:
The correct answer is a. cannot ignore any knowledge regarding a limitation of the agent's authority. Third parties must respect known limitations of an agent's authority and cannot rely solely on the agent's statements about their authority without risking legal disputes.
Step-by-step explanation:
The question relates to dealing with a person claiming to be an agent in a legal context. Among the presented options, the correct answer is: a. cannot ignore any knowledge regarding a limitation of the agent's authority.
The law typically holds that a third party who is aware of limitations on an agent's authority must respect those limitations, and cannot pretend they do not exist. If a third party knows that an agent is acting outside their authority, and still proceeds with the transaction, they risk the principal later declaring that the act was not binding.
In situations where an agent has secret limitations on their authority that a third party is not aware of, the third party is generally not bound by those limitations. Furthermore, a third party generally has a duty to take notice of acts clearly adverse to the principal's interest. Relying solely on the agent's statements about their authority can be risky and is not advisable without further confirmation.