Which of the Following Is True Regarding Liability of a Principal

question 63

Multiple Choice

Which of the following is true regarding liability of a principal if a contract an agent makes with a third party expressly excludes the principal from the contract?

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