An undisclosed principal may result in which of the following?
A) A declaration order by the court for the principal to show a guarantee.
B) Liability of the agent for any contract made on behalf of such a principal.
C) The agent's being declared incompetent by a court of law.
D) All of these.

Question

Quizplus · Accepted Answer

An undisclosed principal situation occurs when an agent acts on behalf of a principal, but the third party with whom the agent is dealing is not aware of the principal's existence. In such cases, the agent may be held liable for any contracts made on behalf of the undisclosed principal, as the third party entered into the agreement without knowledge of the principal's involvement.

An Undisclosed Principal May Result in Which of the Following