Explain for Each of the Following Statements Whether the Agent

question 21

Essay

Explain for each of the following statements whether the agent has liability to the third party.
a.The agent enters into a contract on behalf of its principal with a third party.Unknown to the agent,its principal had died two months previously.
b.The agent acts on behalf of an undisclosed principal.The agent acting on behalf of the principal enters into a contract with the third party.The contract is made in the agent's name,and the circumstances surrounding the contract show that the agent categorically described himself as a principal throughout the negotiations.
c.The agent enters into a contract with the third party but represents himself neither as a principal nor an agent.
d.The agent enters into a contact with the third party.Prior to entering the contract,the agent advised the third party that he was acting on behalf of a principal that did not wish to disclose its name at the present time.

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Definitions:

Potential Acquirer

A company or individual who is likely or has shown interest in purchasing another company or asset.

Pro Rata

A method of allocating an amount proportionally based on a share of some total, such as time or quantity.

Financially Sound

Describes a state in which an entity is stable, profitable, and has a strong balance sheet.

Correctable Problems

Issues or challenges within an organization that can be resolved or improved upon through appropriate measures.