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Brad Owes Paul $10,000

question 5

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Brad owes Paul $10,000.Brad has been slow in paying back the debt.Paul is losing patience with Brad.One day Paul says to Terry,"I will give you a $100 to rough up Brad.Maybe that will motivate him to pay me the money he owes me." Terry agrees to the deal and that night encounters Brad in an alley.He strikes Brad in the knee with a baseball bat and says,"Merry Christmas from Paul." Brad's knee cap is shattered and he subsequently undergoes a surgical repair of the knee.Which of the following statements is correct about this incident?


Definitions:

Disclosed Principal

A principal whose identity is known to a third party at the time the agent makes a contract with the third party.

Liable

Legally responsible or obligated, often in reference to the duty to compensate for harm or loss caused by one's actions or omissions.

Scope of Authority

The scope of authority delineates the range of actions or decisions that an individual or entity, such as an employee or agent, is officially empowered to make on behalf of another party or organization.

Undisclosed Principal

A situation in an agency relationship where the identity of the principal is not revealed to the third party by the agent.

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