QNS Paper Co

Q.N.S. Paper Co. v. Chartwell Shipping Ltd. involved an undisclosed principal situation. The Supreme Court had to determine whether the agent could be successfully sued. What did the Court find?

A) An agent is always liable if a principal defaults in its obligations under a contract.
B) The agent could be successfully sued on the basis that the principal was not disclosed. This is always material information that the agent is duty-bound to share with the other side.
C) Because Chartwell was acting as an agent in a commercial context, there was personal liability for that agent on the contract.
D) Because Chartwell had made it clear it was an agent, there was no personal liability for that agent on the contract.
E) An agent can never be successfully sued, as long as it can proven that the agent was, in fact, representing another.