18)

Jerry tells Tom that he wants to buy Tom's house. In fact, Jerry is buying it for Sam. Jerry contracts with Tom on Sam's behalf to buy the house. What is Jerry's liability on this contract? Assume that Jerry had authority to make the contract.

Multiple Choice

• Jerry is not liable because Sam is an undisclosed principal.

• Jerry is liable because Sam is an undisclosed principal.

• Jerry is liable because Sam is a partially disclosed principal.

• Jerry is liable because Sam is a legally non-existent principal.

• Jerry only can be liable if Jerry expressly agreed to be liable.

19)

Leah is a big fan of LeBron James. Leah just knows that LeBron would love to endorse a new line of basketballs that her firm has been working on, so she enters into an agreement and signs for LeBron. When he hears about the agreement, LeBron is initially upset, but eventually decides that he loves the deal. This is an example of:

Multiple Choice

• Express authority.

• Assumption of the risk.

• Ratification.

• Apparent authority.

• Implied authority.