A principal who signs a contract with a third party is obligated to perform that contract.

Question

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When a principal signs a contract with a third party, they are legally and morally obligated to fulfill the terms of the contract. This is because they have entered into a binding agreement with the third party, which creates a contractual duty to perform. Failing to meet this obligation could result in legal and financial consequences for the principal.

A Principal Who Signs a Contract with a Third Party