In an Agent's Negotiations on Behalf of an Undisclosed Principal

question 49

Multiple Choice

In an agent's negotiations on behalf of an undisclosed principal:

• A) no agreement is binding until the identity of the principal is provided.
• B) the agent cannot be held liable for the breach of a principal.
• C) the principal will be bound by any contract the agent has the authority to make.
• D) the principal is bound to any agreement,even if the agent acts without authority.

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Definitions:

Breach of Warranty

A violation of the terms of a guarantee provided in a sales contract, where a product fails to meet the stated quality or standards.

Rescind Agreement

To revoke, cancel, or annul an agreement, legally undoing its terms and obligations.

Remedies Available

Legal means for enforcing a right or redressing a wrong provided and sanctioned by law, including compensation, restitution, or injunctions.

Breach of Warranty

A legal term referring to the failure to fulfill the terms of a promise or guarantee made in a warranty.