When a disclosed principal authorizes an agent's transaction with a third person, the principal and the third person may each sue the other in the event of a breach of the contract.

Question

Quizplus · Accepted Answer

This is the principle of the doctrine of fully disclosed principal, where the principal's identity and authorization are known to the third party. In case of a breach of the contract, both the principal and the third person have the right to sue each other.

When a Disclosed Principal Authorizes an Agent's Transaction with a Third