True or False: Principals are always bound by the authorized contracts of their independent contractors.

The correct answer is that principals are not always bound by the authorized contracts of their independent contractors. This is because the relationship between a principal and an independent contractor is fundamentally different from that between a principal and an employee. In general, a principal is liable for the acts of its agents or employees but typically not for the acts of independent contractors unless specific circumstances apply.

For instance, if an independent contractor enters into a contract that was not authorized by the principal, the principal is not bound by that contract, as the independent contractor is considered to be acting independently. Additionally, if the independent contractor's actions exceed the authority given to them by the principal, the principal also typically would not be bound by any contracts entered into under those circumstances.

Moreover, the liability of the principal may arise from the contractor's actions only if the contractor was acting within the scope of the duties assigned by the principal. This introduces nuances about the relationship and the context of the contracts involved.

In summary, while there are situations where principals can be held liable for contracts entered into by independent contractors, such as if they authorized those actions or if the independent contractor was acting on behalf of the principal in a manner aligned with what was permitted, it is not an unconditional or absolute obligation. Thus