Marta agrees to buy two tons of tomatoes from Argus Farm Products Inc, hoping that she can find a principal to take responsibility for the contract.In her discussions with Argus, she does not indicate that she intends only to contract as an agent for a principal that she hopes to find.If Fresh Vegetables Ltd ratifies the contract, it can only be enforced by Argus against Fresh Vegetables Ltd.

Question

Quizplus · Accepted Answer

Ratification by Fresh Vegetables Ltd would make them a party to the contract, but since Marta did not disclose she was acting as an agent for an undisclosed principal at the time of the contract, Argus could also hold Marta personally liable.

Marta Agrees to Buy Two Tons of Tomatoes from Argus