Emmett, an agent for Fridley, signs an agreement with Grover on Fridley's behalf but neglects to tell Fridley that the agreement requires the payment of a certain tax. The government prosecutes Fridley for failing to pay the tax. Fridley is

Question

Quizplus · Accepted Answer

In agency law, the principle of imputed knowledge applies, meaning that notice to an agent is considered notice to the principal. Therefore, Fridley is liable because Emmett, as Fridley's agent, had knowledge of the tax requirement.

Emmett, an Agent for Fridley, Signs an Agreement with Grover