QuestionMarch 19, 2026

A principal is bound to contracts with third parties even if the principal's agent did not disclose the identity of the principal, as long as the agent acted within their authority. True False

A principal is bound to contracts with third parties even if the principal's agent did not disclose the identity of the principal, as long as the agent acted within their authority. True False
A principal is bound to contracts with third parties even if the principal's agent did
not disclose the identity of the principal, as long as the agent acted within their
authority.
True
False

Solution
4.3(217 votes)

Answer

True Explanation In agency law, a principal is bound by contracts made by an agent within their authority, even if the principal's identity is undisclosed, as this constitutes an "undisclosed principal" situation.

Explanation

In agency law, a principal is bound by contracts made by an agent within their authority, even if the principal's identity is undisclosed, as this constitutes an "undisclosed principal" situation.
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