Individual Work 1
Instructor Merdaud Jafarnia
If a third person has no knowledge about the fact that the agent is acting for a principal, then both the agency and the principal is known as undisclosed ones. The agent of an undisclosed principal can be held liable on the contract as the real obligor as she contracted in that capacity. Similarly, an undisclosed principal can also be held liable as he must also assume its burdens. The liability of an undisclosed principal and the agent is an alternative liability. It means that the third party can only make either the principal or the agent liable and not both of them together. The contract with Giorgio is an undisclosed one can you and Delilah are both liable. The situation is the same with Felipe although the agency is known. He can hold either the agent or the principal liable for the contract. However, even knew that Delilah was your agent and that you were the principal. Therefore you are liable but Delilah is not. Law of agency and undisclosed principal can be summarized as follows. An undisclosed principal may sue and be sued on a contract made by an agent on his behalf, acting within the scope of his actual authority. In entering into the contract, the agent must intend to act on the principal’s behalf. The agent of an undisclosed principal may also sue and be sued on the contract. Any defense which the third party may have against the agent is available against his principal.
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