A disclosed principal is liable to a third party for a contract made by the agent acting within the scope of his or her authority.

Question

A disclosed principal is liable to a third party for a contract made by the agent acting within the scope of his or her authority.​

Quizplus · Accepted Answer

This is a basic principle of agency law that a disclosed principal (whose identity is known to the third party) is liable for the acts of its agent performed within the scope of the agent's authority. This means that if an agent enters into a contract on behalf of the principal, the principal is responsible for fulfilling the terms of that contract.

A Disclosed Principal Is Liable to a Third Party for a Contract