Question

Liability for contracts formed by an agent depends on how the principal is classified and on whether the actions of the agent were authorized or unauthorized.
a. true
b. false

Answer 1

Liability for contracts formed by an agent depends on how the principal is classified and on whether the actions of the agent were authorized or unauthorized. Principals are classified as disclosed, partially disclosed or undisclosed.

A liability contract is used when someone is liable for causing bodily harm or injuries to another person. These are contracts and legally binding documents. If someone id undisclosed, they don't share all of the information. Disclosed is when the information is fully shared. Partially disclosed is when someone says they have a principle but do not disclose all of the information.