A partially 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

Quizplus · Accepted Answer

A partially disclosed principal is one whose existence is known to the third party, but the third party does not know the identity of the principal. In such a case, the agent is considered the apparent authority of the principal and can bind the principal to a contract. Therefore, the principal is liable for the contract made by the agent.

A Partially Disclosed Principal Is Liable to a Third Party