Which of the following is true regarding an agent's liability when a third party obtains a judgment against a previously undisclosed principal?
A)The agent is freed from liability to the third party.
B)The agent remains liable to the third party.
C)The agent is freed from liability to the third party unless the principal refuses to pay.
D)The agent is freed from liability to the third party unless the principal files for bankruptcy.
E)The agent is freed from liability to the third party unless a contract for personal service was involved.

Question

Quizplus · Accepted Answer

In situations in which a principal was undisclosed,a judgment for a third party against an agent,when the third party comes to know of the undisclosed principal's identity,releases the principal from liability.Also,a judgment against a previously undisclosed principal frees the agent from liability.

Which of the Following Is True Regarding an Agent's Liability