Maco Corp.is a real estate development firm and regularly engages real estate brokers to act on its behalf in acquiring parcels of land.The brokers are authorized to enter into such contracts,but are instructed to do so in their own names without disclosing Maco's identity or Maco's relationship to the transaction.If a broker enters into a contract with a seller on Maco's behalf:
A)Maco will be bound by the contract because of the broker's apparent authority.
B)the broker will not be personally bound by the contract because the broker has express authority to act.
C)Maco will not be liable for the intentional torts of the broker committed while acting on Maco's behalf.
D)the broker will be held liable on contracts he/she signs without disclosing Maco as the principal.

Question

Quizplus · Accepted Answer

The third party reasonably believes that the agent is the other party to the contract.Thus,the third party may hold an agent liable on contracts made for an undisclosed principal.

Maco CorpIs a Real Estate Development Firm and Regularly Engages Real