Which of the following is true regarding an agent who is acting for an undisclosed principal?
A) The agent will bind both himself and the principal on most contracts.
B) The third party will never be bound in a contract with the principal.
C) An undisclosed principal will bind only himself and not the agent.
D) Failure to disclose the name of the principal is a form of fraud.

Question

Quizplus · Accepted Answer

When an agent acts for an undisclosed principal, the agent is bound by the contract along with the principal in most situations. This is because the third party, at the time of contract formation, believes they are dealing only with the agent, not knowing about the principal's existence.

Which of the Following Is True Regarding an Agent Who