Question

Which of the following is true if an agent has no actual or apparent authority to act on behalf of a principal, but the agent still enters into a contract with a third party?

A. The principal is bound only if the principal is a disclosed principal.

B. The principal is bound only if the principal is an unidentified principal.

C. The principal is bound only if the principal is a partially disclosed principal.

D. The principal is bound only if the principal is a disclosed principal or a partially disclosed principal.

E. The principal is not bound unless the principal ratifies the contract.

Answer

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