When the third party entering into the contract is aware of the principal's identity and knows that the agent is acting on behalf of the principal in the transaction, then the agency relationship is a/an __________ agency.
A) partially disclosed
B) fully disclosed
C) undisclosed
D) None of the choices are correct.

Question

Quizplus · Accepted Answer

In a fully disclosed agency, the third party knows the identity of the principal and is aware that the agent is acting on behalf of the principal. This transparency in the relationship allows the third party to understand with whom they are ultimately entering into a contract.

When the Third Party Entering into the Contract Is Aware