An agent may agree to become liable on a contract between a principal and a third party in all but which of the following ways?
A) Making the contract in the agent's own name.
B) Co-making the contract with the principal.
C) Disclosing the principal's name and the agency relationship.
D) Guaranteeing that the principal will perform the contract between the third party and the principal.

Question

Quizplus · Accepted Answer

An agent becomes liable on a contract between a principal and a third party when they make the contract in their own name, co-make the contract with the principal, or guarantee the principal's performance. However, merely disclosing the principal's name and the agency relationship does not make the agent liable on the contract.

An Agent May Agree to Become Liable on a Contract