Which of the Following Is True in Situations in Which

question 70

Multiple Choice

Which of the following is true in situations in which a principal was undisclosed and the third party comes to know of the undisclosed principal's identity, but proceeds to get a judgment against the agent?

• A) The principal is liable to the third party anyway.
• B) The principal is liable to the third party only if the agent does not pay.
• C) The principal is liable to the third party only if the agent files for bankruptcy.
• D) The principal is released from liability to the third party.
• E) The principal is released from liability unless a contract for personal service was involved.

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Definitions:

Agent Liability

The legal principle that holds agents accountable for their actions, especially when such actions cause harm or breach contractual obligations.

Contract

A legally binding agreement between two or more parties that is enforceable by law.

Tort

A violation of another person’s rights or a civil wrongdoing that does not arise out of a contract or statute; primary types are intentional, negligent, and strict-liability torts.

Agent Liability

Refers to the legal responsibility of an agent to their principal, including obligations and potential for repercussions if the agent acts outside their authority or against the interests of the principal.