When do exculpatory clauses not protect a principal?
A)When an agent has express authority
B)When an agent makes intentional misrepresentations
C)When the principal intends that an agent will make false statements
D)Exculpatory clauses always protect a principal

Question

Quizplus · Accepted Answer

Principals may try to escape liability for an agent's misrepresentation by including an exculpatory clause in contracts the agent makes with third parties.Exculpatory clauses do not protect a principal who intends or expects that an agent will make false statements.

When Do Exculpatory Clauses Not Protect a Principal