Asked by
PAULO JANOY
on Nov 30, 2024Verified
In general, an undisclosed principal and the third party to a contract are contractually bound if the agent acts within the scope of his actual authority in making the contract.
Undisclosed Principal
A situation in a business transaction where the identity of the principal (the person for whom the agent acts) is not revealed to the third party involved in the deal.
Actual Authority
The explicit power granted to an agent by a principal, allowing the agent to act on the principal's behalf.
Scope
The extent or range of view, work, or activity; the breadth of a project or operation.
- Distinguish between disclosed, partially disclosed, and undisclosed principals and the legal implications of each status.
Verified Answer
AR
Learning Objectives
- Distinguish between disclosed, partially disclosed, and undisclosed principals and the legal implications of each status.