NH Bar Practice Questions - New Hampshire Bar Examination (UBE) Exam

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A principal authorizes an agent to act, and the agent enters a contract with a third party on the principal's behalf within the scope of authority. The contract binds:

The agent personally, never the principal The principal, who is bound to the third party Neither party, because agency contracts are unenforceable Only the third party

Correct Answer:

The principal, who is bound to the third party

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