Agent's Liabilities to Third Parties

Question 1

Fully Disclosed Agency

Answer 1

Agent generally not liable, provided 3rd party KNEW agent was acting on behalf of principal and KNEW identity of principal.

Question 2

Partially Disclosed Agency

Answer 2

3rd party knew agent was acting on behalf of some principal, but didn’t know who.

Third party can bind either agent OR principal

Question 3

Undisclosed Agency

Answer 3

Third party didn’t know that person was acting as agent.

Third party can bind either agent or principal.

Question 4

Breach of Warranty

Answer 4

Agent statements that he is acting on behalf of a principal is a promise, BREACH OF THIS CAN LEAD TO LIABILITY