Martinez makes a contract with Bowers on behalf of a disclosed principal.If Bowers breaches the contract,ordinarily Martinez has no right of action against Bowers.

Question

Quizplus · Accepted Answer

When a contract is made on behalf of a disclosed principal, the third party (Bowers in this case) knows that there is a principal involved in the contract. Therefore, the third party (Bowers) is only obligated to fulfill the contract with the principal and not with the agent (Martinez). As a result, if Bowers breaches the contract, only the principal can take legal action against Bowers and not the agent (Martinez).

Martinez Makes a Contract with Bowers on Behalf of a Disclosed