Question

When the principal and his name are disclosed to third parties, act of agent are acts of principal.

• A. True
• B. False
• C. Partly true
• D. None of the above

Answer 1

Answer: (A)

True

If an agent acts within the scope of his/her authority, a principal is bound by the act of his agent.

[i] Moreover, a party is responsible for any action or inaction by the party or the party’s agent

[ii] The liability of the principal to a third person upon a transaction conducted by an agent is based upon facts such as:

• the agent was authorized;
  
• the agent was apparently authorized; or
  
• the agent had a power arising from the agency relation and not dependent upon authority or apparent authority.