An agent acting within the scope of his or her authority to contract with a third party is not liable on the contract if the third party knows the principal's identity.

Question

Quizplus · Accepted Answer

When an agent acts within their authority and the third party is aware of the principal's identity, the principal is liable for the contract, not the agent, because the agent is acting on behalf of the principal.

An Agent Acting Within the Scope of His or Her