An undisclosed principal will be bound by any contract the agent enters into with actual authority.

Name: An undisclosed principal will be bound by any contract the agent enters into with actual authority.
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Question

Quizplus · Accepted Answer

An undisclosed principal is one who is not disclosed to the other party in the contract. In such cases, the agent's actions will be binding on the principal if the agent has actual authority to enter into the contract. Therefore, the statement is true.

An Undisclosed Principal Will Be Bound by Any Contract the Agent