If an Agent Makes a Contract with a Third Party

question 86

Multiple Choice

If an agent makes a contract with a third party that expressly excludes the principal from the contract,which statement effectively describes the liability of the principal?

• A)The principal is liable on the contract only if the principal is an unidentified principal.
• B)The principal is liable on the contract unless the principal gave the agent authority in writing to make the agreement with the third party.
• C)The principal is liable on the contract only if the principal is a partially disclosed principal.
• D)The principal is liable on the contract because it is unconscionable to exclude a principal from a contract.
• E)The principal is not liable on the contract.

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Definitions:

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A business division focused on providing assistance and advice regarding a company's products or services, especially related to software, hardware, or other technology issues.

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