The contract liability of the principal may depend upon whether the principal is disclosed,unidentified (partially disclosed),or undisclosed.

Question

Quizplus · Accepted Answer

This statement is true because the liability of the principal differs depending on whether the agent discloses the identity of the principal to the third party, partially discloses it, or does not disclose it at all. In cases where the principal is undisclosed or partially disclosed, the agent may be held liable for any breach of contract or other misconduct. However, if the principal is fully disclosed, then the principal would generally be liable for any actions or obligations under the contract.

The Contract Liability of the Principal May Depend Upon Whether