When a principal is classified as a disclosed principal, which of the following is true?
A) The third party is totally unaware that the agent is action for a principal.
B) A third party can sue both the principal and the agent for misrepresentation.
C) A third party is aware that an agent is making an agreement on behalf of a principal, and the third party also knows the identity of the principal.
D) A third party can choose to contract only with the agent instead of the principal.
E) A third party must consult with the principal before agreeing to be bound in any contract.

Question

Quizplus · Accepted Answer

In the case of a disclosed principal, the third party is aware that the agent is acting on behalf of a principal and also knows the identity of the principal. This awareness affects the legal relationships and liabilities among the parties involved.

When a Principal Is Classified as a Disclosed Principal, Which