When an agent acts for an undisclosed principal, the principal will not be liable to third parties if the

A. Principal ratifies a contract entered into by the agent.

B. Agent acts within an implied grant of authority.

C. Agent acts outside the grant of actual authority.

D. Principal seeks to conceal the agency relationship

Question

Social Studies

Michael George

26 March, 06:43

When an agent acts for an undisclosed principal, the principal will not be liable to third parties if the

A. Principal ratifies a contract entered into by the agent.

B. Agent acts within an implied grant of authority.

C. Agent acts outside the grant of actual authority.

D. Principal seeks to conceal the agency relationship

+3

Answers (1)

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Krause · Answer 1

The correct answer is letter D

Explanation: The undisclosed principal uses third parties to be agent and negotiations, so if this contract is canceled the principal will not be available to participate in the third party.