An Agent Who Makes a Contract for a Disclosed Principal

question 82

Multiple Choice

An agent who makes a contract for a disclosed principal whose contracts are voidable for lack of contractual capacity:

• A) is never liable to the third party.
• B) can be liable to the third party under certain circumstances.
• C) is liable to the third party only if the agent warrants the principal has capacity.
• D) is ordinarily personally liable to the third party if the principal avoids the contract.

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Definitions:

Sensorimotor Stage

The first of Piaget’s stages, which lasts from birth to about 2 years of age, when infants construct an understanding of the world by coordinating sensory experiences (such as seeing and hearing) with motoric actions.

Cognitive Development

Involves the growth and change in intellectual capabilities, such as thinking, reasoning, and understanding, through childhood and adolescence into adulthood.

Piaget

A Swiss psychologist known for his pioneering work in child development, focusing on how children acquire knowledge and their stages of cognitive development.

Expanding

The process or action of expanding in dimensions, capacity, amount, or range.