If an agent is acting within his or her authority on a contract involving an undisclosed principal, the agent is ________.
A) liable for the agreement if it is under $5,000.
B) not liable at all for the contract.
C) Liable for the agreement.
D) will split the contract remedy between he principle and agent.
E) will only hold the principal liable.

Question

Quizplus · Accepted Answer

When an agent acts within their authority on behalf of an undisclosed principal, the agent is liable for the agreement. This is because the other party to the contract is unaware of the principal's existence and thus relies on the agent's creditworthiness and authority.

If an Agent Is Acting Within His or Her Authority