Which of the Following Is Correct with Regard to a Contract

question 49

Multiple Choice

Which of the following is correct with regard to a contract entered into with a third person by an agent of an undisclosed principal?

• A) The agent has no liability to the third person if the agent has acted within the scope of her authority.
• B) The agent is personally liable upon the contract.
• C) The undisclosed principal has no liability on the contract, even if her existence and identity are discovered by the third person.
• D) If the third party obtains a judgment against the principal and the judgment is satisfied, the agent may still have liability to that third party.

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Definitions:

Prosecuting Attorney

A legal representative who brings charges against a suspect in a court of law and tries to prove the case against them.

Value Judgments

Evaluations based on personal or social standards of what is important, good, or desirable.

Comparative Reasoning

The process of making judgments or decisions based on comparing and contrasting various options or instances.

Ideological Reasoning

The process of justifying beliefs or actions based on a set of political, economic, or cultural ideals.