Which of the following is true regarding situations in which an agent enters a contract without authority? The principal is not bound nor is the agent bound. The principal is bound and the agent may be personally liable. The principal is not bound, but the agent may personally liable for breaching an implied warranty of authority. Neither the principal nor the agent is bound if the contract is oral; but if the contract is written, both the principal and agent are bound under the equal dignities rule. Quentin, an accountant, prepares for Ruff n' Reddy Concrete Corporation a financial statement that omits a material fact. The statement is included in Ruff n' Reddy's registration statement filed with the Securities and Exchange Commission. Timor, who reads the statement, and Ubi, who does not, each buy Ruff n' Reddy stock, and both suffered a loss in the value of the stock when the misstatement was uncovered. Under Section 11 of the Securities Act of 1933, Quentin may be liable to neither Timor nor Ubi. Timor and Ubi. Timor only. Ubi only. If the agent suffers a financial loss in the course of, and as a direct result of, the agency relationship, the principal is under a duty to the agent for her loss. usurp O impute reimburse indemnify O compensate