A disclosed principal is not liable to a third party for contracts made by the agent acting outside the scope of his or her authority.

Name: A disclosed principal is not liable to a third party for contracts made by the agent acting outside the scope of his or her authority.
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Question

Quizplus · Accepted Answer

A disclosed principal is only liable for contracts made by an agent within the scope of their authority. If the agent acts outside their authority, the principal is not bound by those actions.

A Disclosed Principal Is Not Liable to a Third Party