An agent is not normally liable on a contract he makes with a third party on behalf of a(n):
A) undisclosed principal.
B) disclosed principal.
C) unidentified principal.
D) All of these are correct.

Question

Quizplus · Accepted Answer

When an agent enters into a contract with a third party on behalf of a disclosed principal, the third party knows the identity of the principal and therefore can hold the principal liable for any breach of contract. In contrast, when an agent enters into a contract with a third party on behalf of an undisclosed or unidentified principal, the third party may be unable to hold the principal liable and may only be able to sue the agent. Therefore, an agent is not normally liable on a contract he makes with a third party on behalf of a disclosed principal.

An Agent Is Not Normally Liable on a Contract He