Cheap Principal.Jason,who is very knowledgeable regarding computers,agrees to purchase computers for Nick's business.Jason is retained for that purpose only,he is paid a set rate for the job,and Nick exercised no control over the manner in which Jason did his work.Jason purchased computers on credit from ABC Computers without any mention of Nick.The computers worked well and were not defective in any way.Unfortunately,Nick did not pay ABC Computers on a timely basis.Jason,therefore,paid ABC Computers out of his own pocket because he wanted to be able to do business with ABC in the future and because his name was on the invoice.Jason asked Nick for reimbursement,but Nick refused.Nick claimed that if Jason had only waited,ABC Computers might have agreed to take less.Did Jason have any legal liability to ABC Computers?
A)Yes,because he purchased the computers.
B)Yes,but only because office equipment is involved.
C)No,because his status was as an agent regardless of whether ABC Computers was aware of that fact.
D)No,because he was an independent contractor.
E)No,because he was an employee.

Question

Quizplus · Accepted Answer

When the agent acts within her authority on behalf of an undisclosed principal,the law will likely hold the agent liable for the agreement.