Donna contracted with Michael's Drug Corporation to buy sedatives on behalf of Clark,a dentist.Clark instructed Donna to use Donna's own name,and to not disclose to Michael's that she was working on Clark's behalf.If Donna signs the contract in her name only and Clark refuses to honor it:
A) Donna is not liable on the contract, because she only acted as an agent.
B) Donna is liable on the contract, but she may sue Clark for indemnification.
C) Donna is liable on the contract, but she may sue Clark for reimbursement.
D) Donna is liable on the contract, but she may sue Clark for compensation.
E) Clark has no liability to anyone, since his name was never disclosed.
Correct Answer:
Verified
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