If the third party does not know the identity of the principal,the agent can be held personally responsible to the:
A) agency.
B) third party.
C) identified principal.
D) unidentified principal.

Question

Quizplus · Accepted Answer

If the third party does not know the identity of the principal and the agent enters into a contract on behalf of the principal, the agent can be held personally responsible to the third party if the principal fails to perform. This is known as undisclosed principal liability. Therefore, the best choice is B, as the agent can be held personally responsible to the third party.

If the Third Party Does Not Know the Identity of the Principal,the