Question

Where the agent discloses that he is merely an agent but conceals the identity of his principal, he is not personally liable, the principal, on being discovered, will be responsible for the contract made by the agent.

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

Answer 1

The correct option is 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.