Which of the following statements best defines a fully disclosed agency?

Question

Quizplus · Accepted Answer

A fully disclosed agency is one in which a contracting third party knows that the agent is acting for a principal and knows the identity of the principal. This means that there is full disclosure of the agency relationship and the principal's identity. In contrast, in a partially disclosed agency, the contracting third party knows that the agent is acting for a principal but does not know the identity of the principal. In an undisclosed agency, the contracting third party does not know of either the existence of the agency or the principal's identity.

Which of the Following Statements Best Defines a Fully Disclosed