Which term refers to acting beyond the authority of the party?

Which term refers to acting beyond the authority of the party?

• A. Duress
• B. Ultra vires
• C. Mistake
• D. Ambiguity

Answer: (B)

The main idea being tested is whether an action falls within the authority granted to a party. Ultra vires describes acts that go beyond those powers—outside the legal power, charter, or agency scope. When someone acts ultra vires, those actions aren’t binding on the principal unless there’s later ratification or the other party reasonably believes there’s authority (apparent authority). In contrast, duress is about coercion affecting consent, mistake is an incorrect belief at formation, and ambiguity concerns unclear or uncertain contract terms. So ultra vires is the correct term because it specifically captures acting beyond the authority granted.

The main idea being tested is whether an action falls within the authority granted to a party. Ultra vires describes acts that go beyond those powers—outside the legal power, charter, or agency scope. When someone acts ultra vires, those actions aren’t binding on the principal unless there’s later ratification or the other party reasonably believes there’s authority (apparent authority). In contrast, duress is about coercion affecting consent, mistake is an incorrect belief at formation, and ambiguity concerns unclear or uncertain contract terms. So ultra vires is the correct term because it specifically captures acting beyond the authority granted.