An agent who wishes to avoid liability on contracts he enters into on behalf of the principal should make sure that the principal is:

Question

Quizplus · Accepted Answer

When the principal is fully disclosed, it means that both the existence and identity of the principal are known to the third party. In this case, the agent will not be liable for the contracts he entered into on behalf of the principal as long as he acted within his authority. Therefore, choosing a fully disclosed principal will help the agent to avoid liability on contracts.

An Agent Who Wishes to Avoid Liability on Contracts He