Agent's liability to third parties

Question 1

When agents always personally liable to third party

Answer 1

Agents are liable to third parties for harm caused by their negligence or intentionally tortious conduct

Question 2

When agent liable for contractual liability

Answer 2

Agent is liable on a contract entered on behalf of a partially disclosed or undisclosed principal

Question 3

When agent NOT liable for contractual liability

Answer 3

Agent is not liable on a contract entered on behalf of a fully disclosed principal

To avoid personal liability, the Agent must make clear to the third party that the agent is representing a Principal and not a party to the contract

Question 4

Fully disclosed principal

Answer 4

Third party knows of existence AND identity of Principal

Question 5

Partially disclosed (or undisclosed) principal

Answer 5

Third party knows of existence of a
principal, but not the identity of Agent’s Principal