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In the context of the law of agency, an agent will NOT be liable for a contract in which of the following Instances?
Where the agent fails to disclose that they are acting as such
Where the agent intends to take the benefit of the contract and does not disclose they are acting as an agent
Where the agent acts on their own behalf although claiming to be an agentWhy is answer A? Please explain each statement in turn briefly.
Contracts for personal benefit and contracts on own behalf, the agent will be liable.
But contracts entered into by an agent on behalf of a principal do not make the agent potentially liable.
Where’s your problem?
I don’t understand why A is answer. It’s says where agent fails to disclose they’re acting as such” AS WHATTT?
No, this is the idea of ‘the undisclosed principal’
If everything goes well with the contract, there will be no breach and no-one liable.
If things go wrong, it IS possible that the agent will be held liable. But then, on the subsequent disclosure of the identity of the principal, the principal assumes primary liability.
Yes, ok, what if the principal has subsequently become bankrupt, or died. That I can’t answer!
OK now?
So undisclosed principal has as per Bpp gives rise to joint liability with the principal not just the agent. Is that what we follow here
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