Which of the Following Is False Regarding Classification of Principals

question 76

Multiple Choice

Which of the following is false regarding classification of principals?

• A) If the third party is aware of the principal's existence but not his or her identity, the principal is classified as a disclosed principal.
• B) When the third party is aware that the agent is making an agreement on behalf of a principal and also knows who the principal is, the principal is a disclosed principal.
• C) An unidentified principal is in the same classification as a partially disclosed principal.
• D) If the third party does not know that an agent is acting on behalf of a principal, an undisclosed principal is involved.
• E) Classification of the principal is important because it helps determine the principal's liability.

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Definitions:

Malpractice

Professional misconduct or negligence—the failure to exercise due care—on the part of a professional, such as an attorney or a physician.

Professional Corporation

A professional corporation is a business entity composed of specific types of professionals, such as lawyers, doctors, or accountants, governed by special laws and typically offers its members certain legal protections.

Law Clerk

A Law Clerk is a legal professional, often a recent law school graduate, who assists a judge by conducting research and preparing legal opinions.

Associate

A person who is linked with another or others in business or professional activities.