Which of the following is true regarding whether Bobby is liable to Susie for the cost of the book if Susie pays Gwen the purchase price?
A) Bobby is liable to Susie for the cost of the book.
B) Bobby is liable to Susie for the cost of the book only if Susie had Bobby sign a document affirming his liability before Susie paid Gwen.
C) Bobby is liable to Susie only if she resells the book and is unable to recover as much as she paid for it.
D) Bobby is not liable to Susie for the cost of the book.
E) Bobby can avoid liability to Susie only if he can establish that his actions constituted "justifiable expectations" under the law absolving him from liability.

Question

Quizplus · Accepted Answer

When the agent acts within her authority on behalf of an undisclosed principal, the law will likely hold her liable for the agreement. In the eyes of the third party, the agent is the only person who could be liable. Yet, if the agent is liable to the third party, then the undisclosed principal is liable to the agent.

Which of the Following Is True Regarding Whether Bobby Is