In Yim v. J's Fashion Accessories, Inc., where J's Fashion sued Yim for failing to pay for goods he bought under the name Ho Tae and Yim denied liability on the grounds that he had been acting as an agent for Hosung Enterprise, Inc which also did business under the name Ho Tae, the courts held that:

Question

Quizplus · Accepted Answer

Yim was liable because he did not disclose Hosung Enterprise, Inc. as the principal. An agent is responsible for disclosing the principal to the other party in the transaction, and failure to do so may result in personal liability for the agent. In this case, Yim used the name Ho Tae for his dealings with J's Fashion, but he did not disclose that he was acting as an agent for Hosung Enterprise, Inc, which meant that J's Fashion believed Yim was the principal. Therefore, Yim was personally liable for the debt.

In Yim V J's Fashion Accessories, Inc