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Where an agent fails to disclose that they are acting as such, will the not be liable for a contract?
An agent acting for an undisclosed principal will be personally liable
This sounds like another objective test question that you are querying!
OK?
Sorry to hyjack this but my question is related.
Question:
In the context of the law of agency, an agent will NOT be liable for a contract in which of the following instances?Answers:
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 agent
Can you clarify, Lord Little?
There must be a fourth option!
Where the agent fails to disclose that they are acting as an agent, then clearly the agent is liable
The second choice above … the agent fails to disclose that they are acting as an agent so, again, the agent is liable
Where the agent acts on their own behalf although claiming to be an agent – he the agent is acting outside the scope of their authority so the principal will be primarily liable
However, on subsequent discovery, the principal will recover value from the agent (if s/he can!)
What’s the fourth option?
The question is in the ‘specimen exams’ in the ACCA website, question 38. There are only these three options and the correct one is ‘Where the agent fails to disclose that they are acting as such’
I’m sure there are better authorities than Wikipedia, but a quick look before I go out for the day has found this:
Liability of agent to third party[edit]
If the agent has actual or apparent authority, the agent will not be liable for acts performed within the scope of such authority, as long as the relationship of the agency and the identity of the principal have been disclosed.
When the agency is undisclosed or partially disclosed, however, both the agent and the principal are liable.
Where the principal is not bound because the agent has no actual or apparent authority, the purported agent is liable to the third party for breach of the implied warranty of authority.
In summary, I don’t understand the ‘specimen exam’ answer
Sorry!
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