In this task, you will be shown a prompt from a judicial decision and multiple holding statements derived from citations following text in a legal decision. Holdings represent the governing legal rule when the law is applied to a particular set of facts. There are five answer choices for each citing text. The correct answer is the holding statement that corresponds to the citing text. You should write an incorrect option. Even though there exist multiple wrong answers, we only need a single wrong answer. There is a <HOLDING> token in the position of the citing text prompt where the holding statement was extracted.

that although the actions of the agent constituted a tort, the agent is not liable to the principal for damages arising from such actions because the agent was acting in accordance with the principal's instructions); Gutting v. Jacobson, 184 Neb. 402, 167 N.W.2d 762 (1969) (stating that an agent is liable to the principal for violations of the agent's fiduciary duties, but that a principal may by acquiescence release the agent from such liability); Kidd v. Maldonado, 688 P.2d 461 (Utah 1984) (finding that although the agent completed an earnest money agreement contrary to the principal-seller's instructions, the seller ratified the agent's acts when the seller read and signed the agreement); Restatement, supra, 401, comment d. Cf., Putnam v. DeRosa, 963 F.2d 480 (1st Cir. 1992) (<HOLDING>); Warner v. Reagan Buick, 240 Neb. 668, 483
Holding statements: (A) holding that a declaratory judgment action was not the proper forum for the principal to make its bad faith argument which instead is properly asserted as a defense to the suretys claim against the principal for indemnification (B) holding that a principal does not have an action against his agent for indemnification based on the agents misrepresentations because the principal was not blameless in the misrepresentations made to the third parties (C) holding that plaintiff lacked standing to assert rico claim for mail fraud based on misrepresentations made to third parties (D) holding principal liable to third party for tort of agent despite lack of privity between principal and third party (E) holding a principal liable for its sales agents misrepresentations
holding that a declaratory judgment action was not the proper forum for the principal to make its bad faith argument which instead is properly asserted as a defense to the suretys claim against the principal for indemnification