A principal may incur liability

Question

Quizplus · Accepted Answer

All of these situations can lead to the principal incurring liability. In A, if the agent fraudulently misrepresents something to induce a third party into a contract, the principal is responsible. In B, if the principal reveals their identity after the agent has already negotiated a contract without disclosing their agency, the principal is responsible. In C, if the agent was acting within their authority when they revealed their agency and concluded a contract, the principal is responsible. In D, if the agent exceeded their authority when they revealed their agency and concluded a contract, the principal is still responsible.

A Principal May Incur Liability