An Undisclosed Principal Is Not Liable to a Third Party

question 44

True/False

An undisclosed principal is not liable to a third party for a contract made by an agent.​

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Definitions:

UCC Article 4

A portion of the Uniform Commercial Code that governs bank deposits and collections.

Negotiable Instrument

An official paper that commits to paying a designated sum, either immediately upon request or at a predetermined date, clearly identifying the individual who will make the payment.

Drawer's Signature

is the signature of the person who has written and is responsible for the financial instrument, such as a check, authorizing its use and the payment it represents.

Customer's Negligence

A situation where a customer's failure to exercise reasonable care results in harm or damage.