If an agent makes a contract with a third party that expressly excludes the principal from the contract,which statement effectively describes the liability of the principal?
A)The principal is liable on the contract only if the principal is an unidentified principal.
B)The principal is liable on the contract unless the principal gave the agent authority in writing to make the agreement with the third party.
C)The principal is liable on the contract only if the principal is a partially disclosed principal.
D)The principal is liable on the contract because it is unconscionable to exclude a principal from a contract.
E)The principal is not liable on the contract.

Question

Quizplus · Accepted Answer

A)In certain situations the agent is the only party liable for the contract.This
includes a situation in which the contract expressly excludes the principal from the contract.If the principal was not a party to the contract,he or she has no liability to the agent.
B)In certain situations the agent is the only party liable for the contract.This includes a situation in which the contract expressly excludes the principal from the contract.If the principal was not a party to the contract,he or she has no liability to the agent.
C)In certain situations the agent is the only party liable for the contract.This includes a situation in which the contract expressly excludes the principal from the contract.If the principal was not a party to the contract,he or she has no liability to the agent.
D)In certain situations the agent is the only party liable for the contract.This includes a situation in which the contract expressly excludes the principal from the contract.If the principal was not a party to the contract,he or she has no liability to the agent.
E)In certain situations the agent is the only party liable for the contract.This includes a situation in which the contract expressly excludes the principal from the contract.If the principal was not a party to the contract,he or she has no liability to the agent.

If an Agent Makes a Contract with a Third Party