When an agent, acting within the scope of his or her authority, contracts with a third party, a disclosed principal is liable to the third party.

Question

Quizplus · Accepted Answer

When an agent acts within their authority and contracts with a third party on behalf of a disclosed principal (meaning the third party knows the identity of the principal), the principal is liable to the third party for the obligations arising from the contract.

When an Agent, Acting Within the Scope of His or Her