If an Agent Makes a Contract with a Third Party

question 19

Multiple Choice

If an agent makes a contract with a third party that expressly excludes the principal from the contract, which statement effectively describes the liability of the principal?

• A) The principal is liable on the contract because it is unconscionable to exclude a principal from a contract.
• B) The principal is liable on the contract only if the principal is an unidentified principal.
• C) The principal is liable on the contract only if the principal is a partially disclosed principal.
• D) The principal is liable on the contract unless the principal gave the agent authority in writing to make the agreement with the third party.
• E) The principal is not liable on the contract.

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Definitions:

North American

Pertaining to or relating to the continent of North America, including countries such as the United States, Canada, and Mexico.

Voluntary Certification

A process where a business or individual chooses to undergo an assessment to verify that certain standards or qualifications have been met, not mandated by law.

Work-life Balance

Work-life balance is the equilibrium an individual seeks between their work commitments and their personal life, aiming for a healthy distribution of time and energy between professional and personal activities.

Quebec

A province in Canada known for its French heritage, language, and distinct culture.