Which of the following is true with regard to contractual relations between the principal and a third party?
A) There is no liability on the part of the principal if the agent acts with implied authority.
B) An undisclosed principal and the third party are contractually bound if the agent acts within her actual authority, unless the contract specifies otherwise.
C) A principal cannot be bound if the agent acts without any authority.
D) An unidentified principal is bound only if the agent acts within the scope of actual authority.

Question

Quizplus · Accepted Answer

An undisclosed principal is bound to a contract if the agent acts within their actual authority, even if the third party is unaware of the principal's existence, unless the contract explicitly states otherwise.

Which of the Following Is True with Regard to Contractual