When an agent signs a contract in the principal's name,he or she is acting on behalf of a(n):
A) disclosed principal.
B) undisclosed principal.
C) apparent principle.
D) statutory principal.

Question

Quizplus · Accepted Answer

When an agent signs a contract in the principal's name, and the identity of the principal is known to the other party, it is considered a disclosed principal. The agent is acting on behalf of the principal, but the other party is aware of the principal's identity. In the case of an undisclosed principal, the agent signs a contract but does not reveal the identity of the principal, and the other party is not aware of the principal's involvement. An apparent principal is a situation where a third party believes that the agent is acting on behalf of a principal, even though the agent may not have actual authority to act on behalf of the supposed principal. A statutory principal is a principal defined by law, such as a government agency.

When an Agent Signs a Contract in the Principal's Name,he