Which of the Following Is True Regarding Liability of an Agent

question 6

Multiple Choice

Which of the following is true regarding liability of an agent acting within his or her authority on a contract involving an undisclosed principal?

• A) The law will likely hold the agent liable for the agreement.
• B) The law will hold the agent liable for the agreement unless the contract the agent had with the principal expressly provided that the agent would not be held liable in such cases.
• C) The law will hold the agent liable for the agreement unless the contract the agent had with the principal impliedly or expressly provided that the agent would not be held liable in such cases.
• D) The law will hold the agent liable for the agreement unless a contract for under $1,000 is involved in which case only the principal would be held liable.
• E) The law would not hold the agent liable on the agreement.

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