Which of the following is true regarding liability of a principal if a contract an agent makes with a third party expressly excludes the principal from the contract?
A) The principal is liable on the contract because it is unconscionable to exclude a principal from a contract.
B) The principal is liable on the contract only if the principal is an unidentified principal.
C) The principal is liable on the contract only if the principal is a partially disclosed principal.
D) The principal is liable on the contract unless the principal gave the agent authority in writing to make the agreement with the third party.
E) The principal is not liable on the contract.

Question

Quizplus · Accepted Answer

In certain situations the agent is the only party liable for the contract. This includes a situation in which the contract expressly excludes the principal from the contract. If the principal was not a party to the contract, he or she has no liability to the agent.

Which of the Following Is True Regarding Liability of a Principal