Question

When a principal is unidentified Group of answer choices the agent and principal will be jointly and severally liable on the contract. the agent and principal will be only jointly liable on the contract. only the principal can be liable. only the agent is liable.

Answer 1

Answer:

The correct answer is letter "A": the agent and principal will be jointly and severally liable on the contract.

Explanation:

Principal-agent relationships born because of the need for principals of contracting agents acting on their behalf. While interacting with third parties, the principal can take one of the three (3) following roles: fully disclosed principal, unidentified principal, and undisclosed principal.

An unidentified principal, also called jointly and severally liable principal, is unknown by third parties. The third party knows the agent represents another party but the identity of that other party is a mystery.