An agent can be liable for a contract that it negotiates on behalf of an unidentified principal.

Question

Quizplus · Accepted Answer

This is known as the doctrine of undisclosed principal, which means that if an agent does not reveal the identity of the principal during contract negotiations, the agent may be held liable for the contract. However, if the principal is later revealed, the agent will be released from liability and the principal will assume responsibility for the contract.

An Agent Can Be Liable for a Contract That It