BUSINESS ADMINISTRATION
BUSINESS LAW
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
the agent
|
|
|
the principal
|
|
|
both a and b
|
|
|
none of these
|
Detailed explanation-1: -An agent, having an authority to do an act, has authority to do every lawful thing which is necessary in order to do such act. An agent having an authority to carry on a business, has authority to do every lawful thing necessary for the purpose, or usually done in the course, of conducting such business.
Detailed explanation-2: -Someone who commits a tort, even if on behalf of a principal, is liable for the tort. The rule is different for contracts. An agent acting within the scope of her authority to contract is not liable to third parties on contracts or obligations entered into on behalf of the principal.
Detailed explanation-3: -An agent is personally liable to the third party in the following cases: He agrees to be personally liable to the third parties. He acts for a principal who resides abroad. When he signs a negotiable instrument in his own name without disclosing that he is merely an agent.