Asked by
Lostara McBee
on Nov 10, 2024
Verified
When Joe was given authority to do "anything necessarily incidental" to carrying out his agency function of selling vacuum cleaners for the principal, that gave Joe the authority to borrow money to purchase a car to be used in the business.
Necessarily Incidental
Activities or actions that are not central but are unavoidably part of or related to accomplishing a main activity or goal.
Borrow Money
The act of receiving funds from another party with the promise to return the principal amount along with potential interest.
- Discriminate between the concepts of apparent and actual authority and their respective impacts.
- Acquire an understanding of the significance of fiduciary roles and the requirement for agents to place principals’ interests above all.
Verified Answer
TD
Learning Objectives
- Discriminate between the concepts of apparent and actual authority and their respective impacts.
- Acquire an understanding of the significance of fiduciary roles and the requirement for agents to place principals’ interests above all.