An agent who makes a contract for a disclosed principal whose contracts are voidable for lack of contractual capacity:
A) is ordinarily personally liable to the third party if the principal avoids the contract.
B) can be liable to the third party under certain circumstances.
C) is never liable to the third party.
D) is liable to the third party only if the agent warrants the principal has capacity.

Question

Quizplus · Accepted Answer

An agent can be liable to the third party if they misrepresent the principal's capacity or if they fail to disclose the principal's lack of capacity.

An Agent Who Makes a Contract for a Disclosed Principal