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

Question

Quizplus · Accepted Answer

When an agent makes a contract with a third party on behalf of a disclosed principal, the agent is not liable on the contract. This is because the third party knows that the agent is acting on behalf of a principal and therefore does not expect the agent to be personally liable. In contrast, an agent who makes a contract with a third party on behalf of an undisclosed or partially disclosed principal may be held liable on the contract because the third party did not know that the agent was acting as an agent and therefore reasonably believed that the agent was personally liable.

An Agent Is Not Normally Liable on a Contract He