Marley goes outside the duties of her agency in negotiating a business contract between her principal and a customer. Which of the following is true? A. Even if the principal ratifies the contract Marley made, it does not have to pay her for the work. B. If the principal disavows the contract Marley made, it still must pay for the work. C. If the principal ratifies the contract Marley made, it must pay her for the work. D. The principal is required to ratify the contract Marley made, and also to pay her for her work.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Marley goes outside the duties of her agency in negotiating a business contract between her principal and a customer. Which of the following is true?

A. Even if the principal ratifies the contract Marley made, it does not have to pay her for the work.

B. If the principal disavows the contract Marley made, it still must pay for the work.

C. If the principal ratifies the contract Marley made, it must pay her for the work.

D. The principal is required to ratify the contract Marley made, and also to pay her for her work.

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