The agent is held liable on contracts entered into on behalf of an undisclosed principal.

Question

Quizplus · Accepted Answer

When an agent enters into a contract on behalf of an undisclosed principal, the agent can be held liable for the contract's performance. This is because the other party to the contract is unaware of the existence of the principal and thus cannot hold them responsible. As such, the agent is treated as the principal and is held liable for any breach of the contract.

The Agent Is Held Liable on Contracts Entered into on Behalf