Asked by Rachel Oftedahl on Apr 27, 2024
Verified
An agent who makes a contract for a disclosed principal whose contracts are voidable for lack of contractual capacity:
A) is never liable to the third party.
B) can be liable to the third party under certain circumstances.
C) is liable to the third party only if the agent warrants the principal has capacity.
D) is ordinarily personally liable to the third party if the principal avoids the contract.
Voidable
A legal term referring to a contract or agreement that may be declared invalid by one of the parties due to issues like fraud or misrepresentation.
Contractual Capacity
The legal ability of an individual or entity to enter into binding contracts, requiring understanding and agreement to the contract's terms.
Principals
Individuals or entities that engage an agent to act on their behalf in transactions or negotiations.
- Learn about the fundamentals of interactions between principals and agents, and the particular conditions under which responsibility for contracts may fall on either party.
- Analyze the tort liability of principals for the acts of their agents, including negligence, respondeat superior, and unauthorized acts.
Verified Answer
Learning Objectives
- Learn about the fundamentals of interactions between principals and agents, and the particular conditions under which responsibility for contracts may fall on either party.
- Analyze the tort liability of principals for the acts of their agents, including negligence, respondeat superior, and unauthorized acts.
Related questions
Discuss Whether the Principal Is Liable in Each of the ...
Discuss the Fundamental Rules of Contractual Liability Between a Principal ...
Agents Who Go Beyond Their Authority When the Principal Is ...
Generally, the Liability of a Principal on a Contract Formed ...
An Agent's Signature Can Create Liability for a Principal as ...