Question

Which of the following is true regarding the right of a third party to reject the performance of the principal?

A. The third party may reject the performance of the principal at any time.

B. The third party may never reject the performance of the principal.

C. The third party may reject the performance of the principal if the third party entered into a contract with the agent such that the performance of the agent is required.

D. The third party may reject the performance of the principal if the third party entered into a contract with the agent such that the performance of the agent is required or the third party can establish that the third party had been involved in past litigation with the principal.

E. The third party may reject the performance of the principal if the third party entered into a contract with the agent such that the performance of the agent is required; the third party can establish that the third party had been involved in past litigation with the principal; or the principal owes money to the third party.

Answer

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