Karim's agent,Monica,was instructed to negotiate a contract to buy a new delivery truck for Karim's courier business but not to disclose Karim's identity,other than to indicate she is acting for 'an undisclosed buyer'.Which statement best describes this situation?

Question

Quizplus · Accepted Answer

In this situation, Monica is acting as an agent for Karim, who is the principal. When an agent enters into a contract on behalf of a disclosed principal, the principal is bound by the contract, not the agent. Since Monica is negotiating on behalf of Karim without disclosing his identity, Karim, as the undisclosed principal, will be bound by the contract.

Karim's Agent,Monica,was Instructed to Negotiate a Contract to Buy a New